U.S. Acquires Majority Control Over Venezuela’s Oil

President Trump recently announced that the United States has secured a significant control over Venezuela’s oil reserves, describing it as the largest oil deal in world history. This move involves a strategic partnership facilitated by Secretary of State Marco Rubio and Secretary of War Pete Hegseth, in collaboration with Interim President of Venezuela, Delcy Rodriguez.

The deal grants the U.S. control over more than 65 billion barrels of proven oil reserves, which equates to roughly 21% of Venezuela’s total reserves of 303 billion barrels. The arrangement reportedly involves no financial burden on American taxpayers, according to Trump’s statement on Truth Social.

Details of the Deal

A U.S. official has confirmed via email that a private company, part of a joint venture with the U.S. government, received 100-year concessions for oil fields in Venezuela containing 63 billion barrels of proven reserves. This unnamed private operator works in collaboration with U.S. entities.

In terms of ownership and output, the U.S. government will hold more than half the value of the new oil company, divided between equity ownership and guaranteed oil offtake. The agreement stipulates a 55% effective output for the joint venture, positioning the new company as having the world’s second-largest proven oil reserve, behind Saudi Aramco.

Challenges Ahead

While the U.S. has partnered with Venezuelan firms to tap into these reserves, considerable obstacles remain in the extraction process. Logistical and regulatory challenges could hinder the efficient withdrawal of petroleum.

This development is a significant aspect of U.S. energy policy, impacting everything from oil and gas policies to supply chain considerations. Insights and updates on these topics are curated in The Hill’s Energy & Environment newsletter, delivered daily to subscribers.