US reaches deal with Venezuela for control of 65 billion barrels of oil reserves

President Donald Trump announced a historic agreement on August 28, 2026, granting the United States majority control over 65 billion barrels of Venezuela's proven oil reserves. Negotiated with interim President Delcy Rodríguez, who assumed power after US forces captured Nicolás Maduro in January, the deal establishes a joint venture with 55% US control and a 100-year concession. The deal aims to lower US gas prices, which average $4.09 a gallon, and replenish the US Strategic Petroleum Reserve, which has fallen below 300 million barrels due to the war with Iran. Venezuela is also weighing an exit from OPEC as its partnership with Washington deepens.

US-Venezuela oil deal

• ▪The oil agreement was negotiated by US Secretary of State Marco Rubio, US Defense Secretary Pete Hegseth, and Venezuela's interim President Delcy Rodríguez.
• ▪President Donald Trump announced on August 28, 2026, that the United States has reached an agreement with Venezuela to secure majority control over more than 65 billion barrels of Venezuela's proven oil reserves.
• ▪The oil agreement involves the development of 17 strategic oil fields in Venezuela that hold a proven potential of 65 billion barrels of oil.

US military intervention in Venezuela

• ▪Following the capture of Nicolás Maduro, former Vice President Delcy Rodríguez assumed power as Venezuela's interim president and signed a law opening the nation's oil sector to privatization.
• ▪US military forces captured Venezuelan President Nicolás Maduro and his wife Cilia Flores on January 3, 2026, subsequently bringing them to the United States to face federal narcoterrorism and drug trafficking charges.

Joint venture ownership structure

• ▪The United States government will obtain oil from the joint venture at cost to help fill the US Strategic Petroleum Reserve and supply the US military.
• ▪Interim Venezuelan President Delcy Rodríguez granted the joint venture a 100-year concession to operate in the designated Venezuelan oil fields.
• ▪Under the agreement, the United States government will control 55% of a new joint venture formed with an unnamed private operator in Venezuela.

Investment projections for Venezuela

• ▪The Venezuelan government estimates that the oil partnership will generate over $209 billion in tax revenue for the state of Venezuela.
• ▪Interim President Delcy Rodríguez stated that the oil agreement will draw more than $100 billion in private investment into Venezuela's oil industry.

Venezuela potential OPEC exit

• ▪Venezuela is examining plans to withdraw from the Organization of the Petroleum Exporting Countries, a cartel it helped found in 1960, as it deepens ties with the United States.
• ▪The United Arab Emirates withdrew from the Organization of the Petroleum Exporting Countries in late April 2026 to utilize its expanded production capacity unfettered by output quotas.

Impact on US gas prices

• ▪President Donald Trump stated that the oil deal with Venezuela will substantially lower gasoline prices for American consumers.
• ▪The average price of a gallon of gasoline in the United States stood at approximately $4.09 on August 28, 2026, up from $3.21 at the same time in 2025.
• ▪The US Strategic Petroleum Reserve fell below 300 million barrels in early August 2026, reaching its lowest level since 1982 amid disruptions from the US war with Iran.