Archive · 29 Aug 2026
Trump Announces U.S.-Venezuela Agreement Over Major Oil Reserves
President Donald Trump says the United States made a new oil agreement with Venezuela.
He says American companies will receive majority control of more than 65 billion barrels of proven oil reserves.
The agreement reportedly involves private businesses and Venezuelan interim President Delcy Rodriguez.
The announcement did not explain exactly which oil fields or companies are included.
Venezuela has very large oil reserves but currently produces only about 1.25 million barrels each day.
U.S. officials want more Venezuelan oil for American refineries.
They also hope additional oil could lower gasoline prices and refill an emergency oil stockpile.
Some questions remain about whether the agreement complies with Venezuelan law.
Donald Trump said the United States secured majority control of more than 65 billion barrels of Venezuela’s proven oil reserves.
Trump said the agreement involved Secretary of State Marco Rubio, Secretary of War Pete Hegseth, interim President Delcy Rodriguez and private businesses.
The announcement provided few details about the agreement’s structure, participating companies, fields or how U.S. control would work.
Reuters reported that a lease model and auctions to U.S. producers had been considered, but Venezuelan legal and constitutional challenges could arise.
The administration says increased Venezuelan production could supply U.S. refineries, reduce fuel prices and help replenish the Strategic Petroleum Reserve.
- Who
- U.S. President Donald Trump, Secretary of State Marco Rubio, Secretary of War Pete Hegseth, Venezuelan interim President Delcy Rodriguez and private businesses.
- What
- An announced agreement giving the United States majority control of more than 65 billion barrels of Venezuela’s proven oil reserves.
- When
- Trump announced the agreement on Friday, August 28; the articles also refer to events since January.
- Where
- Venezuela and its oil industry, with crude intended in part for U.S. refineries.
- Why
- The administration seeks to revive Venezuela’s deteriorated oil production, secure crude supplies for the United States, reduce fuel prices and replenish the Strategic Petroleum Reserve.
Administration’s Case
Unresolved Concerns
Economic and energy benefits
Administration’s Case
The Trump administration presents the agreement as a way to attract American investment, revive Venezuela’s oil industry, secure crude for U.S. refineries and potentially lower fuel prices.
Unresolved Concerns
The articles note that Venezuela’s production remains far below its potential after underinvestment, mismanagement and sanctions, while the agreement’s practical structure and expected effects remain unclear.
Legal basis
Administration’s Case
Trump said the United States secured control through a partnership with private business at no cost to American taxpayers.
Unresolved Concerns
Reuters reported that a lease or auction arrangement could face legal and constitutional challenges because the Venezuelan state controls core oil-industry activities.
Scale of control
Administration’s Case
Trump described the arrangement as majority U.S. control of more than 65 billion barrels of proven reserves.
Unresolved Concerns
The Reuters report characterized the push as involving roughly a fifth of Venezuela’s vast reserves and said the announcement offered too few details to establish how control would operate.
- Announced U.S. control
- Majority control of more than 65 billion barrels of Venezuela’s proven oil reserves, according to Trump.
- Venezuelan production
- About 1.25 million barrels of crude per day.
- Agreement details
- Trump did not identify the fields or companies involved or explain how majority control would be exercised.
- Possible structure
- Sources told Reuters that a lease model, potentially involving auctions to U.S. producers, had been considered.
- Legal concerns
- The arrangement could face legal and constitutional challenges because Venezuela retains state control over core oil-industry activities.
- U.S. objectives
- Increase Venezuelan output, supply U.S. refineries, ease gasoline prices and replenish the Strategic Petroleum Reserve.
- Political timing
- The administration faces pressure over rising gasoline prices ahead of midterm elections later in the year.