Trump announces US deal to take control of 65 billion barrels of Venezuelan oil reserves

President Donald Trump announced a historic agreement with Venezuela's interim government to grant the United States majority control over 65 billion barrels of proven oil reserves. Negotiated by Secretary of State Marco Rubio and Defense Secretary Pete Hegseth alongside Venezuelan interim President Delcy Rodriguez, the deal establishes a private joint venture with a 100-year concession. The move follows the January 2026 U.S. military capture of Nicolas Maduro and aims to lower U.S. gas prices, which averaged $4.09 a gallon amid the ongoing war in Iran.

US-Venezuela oil deal

• ▪U.S. Secretary of State Marco Rubio stated that the oil agreement will bring nearly $100 billion in private investment to rebuild Venezuela's economy
• ▪President Donald Trump announced on August 28, 2026, that the United States entered an agreement with Venezuela to take control of 65 billion barrels of Venezuelan oil reserves
• ▪The oil agreement was negotiated by U.S. Secretary of State Marco Rubio, U.S. Defense Secretary Pete Hegseth, and Venezuelan interim President Delcy Rodriguez

Private sector partnership structure

• ▪Negotiations between the United States and Venezuela focused on up to 17 oil fields, including green fields in the Orinoco Belt and mature areas in Lake Maracaibo
• ▪The United States government will control 55% of a private joint venture operating in Venezuelan oil fields, split between equity and the ability to obtain oil at cost
• ▪The joint venture is a partnership between the United States government and an experienced private operator, granting a 100-year concession to operate in fields containing 63 billion barrels of oil

Venezuelan interim government

• ▪Interim President Delcy Rodriguez signed legislation that opens Venezuela's oil sector to privatization, reversing decades of state-controlled socialist energy policy
• ▪Interim Venezuelan President Delcy Rodriguez assumed power after U.S. military forces captured former President Nicolas Maduro in January 2026

US military operation background

• ▪President Donald Trump stated in July 2026 that the United States had collected more than $13 billion from the sale of Venezuelan oil since the removal of Nicolas Maduro
• ▪U.S. military forces captured Venezuelan President Nicolas Maduro in January 2026 and brought him to the United States to face federal drug trafficking and narcoterrorism charges

Constitutional legal challenges

• ▪ExxonMobil CEO Darren Woods characterized Venezuela as uninvestable in January 2026, noting that the company's assets in the country had been nationalized twice in the 1970s and 2000s
• ▪Energy analysts and experts stated that a U.S. government lease model may face legal and constitutional challenges in Venezuela, where the constitution reserves core oil activities to the state

US gasoline price strategy

• ▪The United States Strategic Petroleum Reserve fell below 300 million barrels in early August 2026, representing a decline of over 100 million barrels since the start of 2026
• ▪The average price of gasoline in the United States stood at $4.09 a gallon on August 28, 2026, compared to $3.21 at the same time in 2025
• ▪The Trump administration is seeking to lower domestic fuel prices ahead of the November 2026 midterm elections, amid high gasoline prices driven by the war in Iran

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