Trump Deal Grants US Majority Control of 65 Billion Barrels of Venezuelan Oil Reserves

President Donald Trump announced Friday that the United States has secured majority control of 65 billion barrels of Venezuela’s proven oil reserves, an arrangement that would more than double America’s total reserve holdings and potentially reshape global crude supply dynamics.

The deal, announced after U.S. markets closed Friday, grants American interests a 55% stake in a joint venture covering 17 strategic fields in the Orinoco Belt and Lake Maracaibo regions. Trump said the agreement was negotiated by Secretary of State Marco Rubio and Defense Secretary Pete Hegseth in cooperation with Venezuelan interim President Delcy Rodriguez and private companies, at “no cost to the American Taxpayer.”

Combined with the U.S. proven crude and lease condensate reserves of about 46 billion barrels, the 65 billion barrels covered by the agreement bring the total to roughly 111 billion barrels, according to 24/7 Wall St. — equivalent to about 7.1% of global proven reserves, close to the United Arab Emirates’ 113 billion barrels and exceeding Kuwait’s 101.5 billion.

Deal Details and Production Targets

Rodriguez said the 25-year bilateral project aims to increase Venezuela’s crude output to 1.5 million barrels per day, up from current levels of roughly 1.2 million to 1.25 million bpd. She called the accord “historic” in a late-night address on state broadcaster VTV, adding that the 1.5 million bpd target was an initial goal and that the broader plan includes the development of eight greenfield oil blocks.

Venezuelan officials project more than $100 billion in private investment under the agreement and $209 billion in eventual tax revenue, based on a benchmark oil price of $65 per barrel, CNBC reported. Rodriguez said roughly $19 from each barrel produced and sold under the arrangement would flow directly to the Venezuelan state, while the country retains “ownership of and sovereignty” over its natural resources.

Trump provided few details on the legal structure of the arrangement. According to a report by CGTN citing Reuters, a lease model is under consideration with fields potentially auctioned to U.S. producers, but the arrangement could face legal and constitutional challenges in Venezuela, where state-owned PDVSA has traditionally retained control over core oil industry activities. Analysts have also noted there is no established precedent for a U.S. government lease to operate Venezuelan oilfields.

Use for Strategic Petroleum Reserve

Trump said oil from Venezuela would go toward replenishing the Strategic Petroleum Reserve, which was heavily drawn down under the previous administration. “One of the things I am going to do with the Venezuelan Oil is fill up the Strategic National Reserves,” Trump wrote on Truth Social, blaming former President Joe Biden for leaving the reserves “virtually emptied.”

A U.S. official told NDTV Profit that as production increases, oil supplied at cost could be directed toward the SPR and meeting military requirements. The SPR, the world’s largest emergency crude stockpile, has been declining as releases countered supply disruptions and elevated prices in recent years.

No Immediate Impact at the Pump

Despite Trump’s characterization of the deal as “the biggest oil deal in world history,” analysts caution that meaningful supply increases will take years. Venezuela’s oil is predominantly extra-heavy crude requiring diluents, specialized refining and extensive infrastructure repairs after a decade of underinvestment, mismanagement and sanctions. Current output sits at its highest since 2019 but remains a fraction of the country’s historic peaks above 3 million bpd.

“Even with rapid investment, meaningful incremental supply will take time to reach global markets,” 24/7 Wall St. reported. U.S. Gulf Coast refiners that already process Venezuelan crude stand to benefit from more reliable volumes, but the deal does not create an immediate flood of light sweet crude that would pressure gasoline prices lower in the near term.

Company Positioning and Risks

Venezuelan officials are preparing to sign agreements next week granting new exploration and production rights to several U.S. firms. Chevron, which already operates the largest U.S. footprint in the country and accounts for a substantial share of current output, is among the companies expected to finalize talks to transition its joint ventures into the new energy framework, according to sources close to the negotiations cited by CNBC.

Service companies such as SLB have secured early contracts for technology and equipment, 24/7 Wall St. reported. For investors, the clearest near-term opportunity sits with firms that already have operational knowledge and balance sheets strong enough to fund expansion.

Granted, political and legal risks remain. Venezuela’s constitution and hydrocarbons laws have traditionally reserved a central role for the state, and the legal basis for a U.S. government lease to operate oilfields is unclear. Infrastructure bottlenecks and the heavy nature of the crude could also temper the pace of growth.

Market Reaction

Since the agreement was announced after Friday’s close, no market reaction can be attributed to it yet. Monday will be the first test for crude benchmarks and energy stocks.

The deal marks a strategic shift in U.S. access to global oil supplies, expanding control over a slice of the world’s largest proven reserves without adding a single new domestic well. But the timeline for production gains — and any resulting relief at the pump — will unfold over years rather than quarters, leaving near-term energy markets largely unchanged.