US and Venezuela negotiate deal for American access to oil reserves

President Donald Trump announces a historic agreement with Venezuela's interim government, led by Delcy Rodriguez, to secure majority US control over 65 billion barrels of proven oil reserves. Negotiated by Marco Rubio and Pete Hegseth, the deal targets 17 strategic fields to help replenish depleted US strategic reserves, which hit a 40-year low of 289.7 million barrels. While Rodriguez projects $100 billion in private investment and $209 billion in tax revenue, energy analysts warn the proposed lease model faces steep legal and constitutional hurdles under Venezuelan law.

US-Venezuela oil deal terms

• ▪US President Donald Trump announced on August 28, 2026, that the United States has reached an agreement with Venezuela to take control of more than 65 billion barrels of Venezuela's proven oil reserves
• ▪Energy analysts, including David Goldwyn and Jorge Pinon, stated that the proposed US-Venezuela oil lease model lacks precedent and faces potential legal and constitutional challenges under Venezuelan law
• ▪The legal structure under consideration for the US-Venezuela oil agreement is a lease model, which would allow the US government to auction the designated fields to American producers
• ▪The oil agreement between the United States and Venezuela involves the development of 17 strategic oil fields located in the Orinoco Belt and Lake Maracaibo regions

Venezuela oil production context

• ▪Venezuela holds the world's largest proven oil reserves, but its domestic production has fallen to approximately 1.25 million barrels of crude oil per day
• ▪Venezuela is closely examining plans to exit the OPEC oil production group as it strengthens its economic and diplomatic ties with the United States
• ▪Chevron, the only US oil company operating in Venezuela when Nicolas Maduro was ousted, reported in July 2026 that it had raised daily production to 280,000 barrels

US strategic petroleum reserves

• ▪The Trump administration has explored crude oil swaps with US producers as a mechanism to replenish the depleted United States Strategic Petroleum Reserve
• ▪The United States Strategic Petroleum Reserve fell to approximately 289.7 million barrels in August 2026, marking its lowest level since 1982

Trump administration energy policy

• ▪US Secretary of State Marco Rubio and Defense Secretary Pete Hegseth negotiated the oil agreement directly with Venezuelan interim leader Delcy Rodriguez
• ▪The Trump administration negotiated the Venezuelan oil agreement to secure stable, low-cost crude oil supplies to help lower domestic gasoline prices ahead of the November 2026 midterm elections

Venezuelan government response

• ▪The interim government of Venezuela is preparing to sign formal agreements next week to grant new oil exploration and production rights to private companies
• ▪Venezuelan interim President Delcy Rodriguez confirmed the agreement, stating it would bring more than $100 billion in private investment and $209 billion in tax revenue to Venezuela

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