US President Donald Trump has announced an unprecedented US initiative to secure partial control over Venezuela’s vast oil reserves, saying American companies could help revive the country’s struggling energy industry while providing the United States with a new source of crude oil.
Trump made the announcement on Friday, August 28, saying the United States had secured majority control of more than 65 billion barrels of Venezuela’s proven oil reserves through partnerships with private businesses.
However, the US president provided few details about the structure, ownership arrangements or implementation timeline of the agreement.
In a post on Truth Social, Trump said the initiative was being carried out under his direction by Secretary of State Marco Rubio and Defense Secretary Pete Hegseth, working with Venezuela’s interim President Delcy Rodríguez and private-sector companies.
Trump claimed the United States had secured majority control of the country’s proven oil reserves “at no cost to the American taxpayer.”
The announcement follows several weeks of negotiations between Washington and Caracas over a potential agreement that would give US companies long-term access to multiple Venezuelan oil fields.
Under the proposed arrangements, companies—particularly US firms—would receive rights to explore and produce oil, with crude from the projects expected to be supplied to the United States.
Venezuelan authorities have welcomed the proposed deal, saying it could help strengthen the country’s economy and increase government revenues.
Officials are reportedly preparing to sign agreements as early as next week. The contracts are expected to open the door for several companies to participate in new oil exploration and production projects.
The development would represent a major expansion of the United States’ role in Venezuela’s oil sector, particularly after years of sanctions, underinvestment and declining production.
Venezuela has the world’s largest proven oil reserves, with more than 65 billion barrels cited in Trump’s announcement.
Despite its enormous reserves, however, the country’s oil industry has suffered from years of insufficient investment, mismanagement and US sanctions.
Venezuela currently produces only around 1.2 million barrels of crude oil per day, far below the country’s potential production capacity.
The Trump administration hopes that renewed investment by US energy companies can increase Venezuelan production and create a more reliable source of crude for American refineries.
One of Washington’s stated objectives is to increase the supply of crude available to US refiners. The administration expects that greater access to Venezuelan oil could contribute to lower energy costs in the United States.
The potential impact on prices, however, will depend on how quickly Venezuelan production can recover, the scale of investment required to rehabilitate existing oil infrastructure and the terms ultimately agreed between the two governments and participating companies.
The proposed agreements could therefore mark a significant turning point for Venezuela’s oil industry and reshape the country’s economic relationship with the United States.
