The United States has secured a deal to manage over 65 billion barrels of Venezuela’s proven oil reserves, following President Donald Trump’s announcement. This agreement is expected to significantly boost American oil reserves, increase supply, and potentially reduce gasoline prices across the nation.
Trump, after authorising the arrest of Venezuela’s former president Nicolás Maduro on 3 January, had been intent on leveraging the vast oil reserves of the country. The US President indicated that the agreement was negotiated by Secretary of State Marco Rubio and Defence Secretary Pete Hegseth with Venezuela’s interim leader, Delcy Rodriguez, in collaboration with private enterprises. Details regarding the terms and commitments of the deal remain undisclosed, but Trump emphasized that the arrangement imposes no financial burden on American taxpayers.
The Impact on Venezuela and the US
The deal, as highlighted by Rubio, is poised to infuse nearly $100 billion in private investments into Venezuela, fostering job creation and rekindling the nation’s economy. This substantial financial injection is anticipated to support numerous high-paying positions and act as a catalyst for Venezuela’s economic revitalisation.
Despite Venezuela’s sizeable oil reserves, estimated at 303 billion barrels, its production has sharply declined since the 1990s. Trump is encouraging American oil companies to invest a minimum of $100 billion (£75 billion) to resurrect the country’s oil industry. He has previously accused Venezuela of confiscating and selling American oil assets, causing significant financial losses for the US.
In the aftermath of Maduro’s arrest, Trump’s administration undertook the task of steering Venezuela until a transition could ensue, asserting control over the sale of Venezuelan oil indefinitely. Rubio described the agreement as a “huge win” for both nations, highlighting its potential to transform and support both societies.
Reporting based on coverage first published by bbc.co.uk.