WASHINGTON, AUGUST 29, 2026: US President Donald Trump has announced a major expansion of American involvement in Venezuela’s oil industry, saying the United States has secured majority control of more than 65 billion barrels of Venezuela’s proven oil reserves through partnerships with private companies.
Trump provided few details about the structure of the agreement, including which oilfields and companies are involved or how US majority control over the reserves would be exercised. The announcement represents an unprecedented potential expansion of the US role in Venezuela’s oil sector.
The agreement follows weeks of negotiations between Washington and Caracas aimed at giving US companies long-term access to Venezuelan oilfields and securing additional crude supplies for American refineries.
Trump said the arrangement had been reached at no cost to US taxpayers, with Secretary of State Marco Rubio and Secretary of War Pete Hegseth working with Venezuelan interim President Delcy Rodriguez and private-sector partners.
Venezuela possesses the world’s largest proven oil reserves, estimated at more than 300 billion barrels, but current production remains around 1.25 million barrels per day, well below its potential following years of underinvestment, mismanagement and sanctions.
Venezuelan officials are expected to sign agreements next week granting new exploration and production rights to several companies, particularly US firms. Sources said a lease-based model was under consideration, under which oilfields could potentially be auctioned to US producers.
However, such an arrangement could face legal and constitutional challenges because the Venezuelan state retains significant control over the country’s oil industry.
A list reviewed by Reuters indicates that the potential fields are located in the Orinoco Belt and Lake Maracaibo regions, although the exact assets covered by the agreement have not been officially disclosed.
US Secretary of State Marco Rubio described the arrangement as beneficial to both countries, saying it could secure stable, lower-cost crude supplies for the United States and contribute to lower gasoline prices.
For Venezuela, Rubio said the agreement could attract nearly $100 billion in private investment, create thousands of jobs and support the reconstruction of the country’s economy.
Rodriguez said the agreement could significantly increase Venezuelan oil production through the development of 17 strategic fields. She estimated that the resulting tax revenues for the country could reach $209 billion.
“These investments will contribute not only to the recovery and modernization of our industry, but also to our country’s economic growth, the energy security of our hemisphere, and greater balance in international markets,” Rodriguez said.
Analysts cautioned that the potential economic impact would depend heavily on the legal and financial structure of the agreement. Questions remain over whether a US government-backed lease arrangement would comply with Venezuela’s constitution and hydrocarbons legislation.
Energy analyst David Goldwyn said there was no clear precedent for the US government directly entering into an oilfield lease arrangement and questioned whether the proposed structure would be sufficient to overcome the longstanding barriers to investment in Venezuela.
Venezuela’s oil industry continues to face major challenges, including political uncertainty, an unreliable power grid, limited export infrastructure and extensive deterioration of production facilities.
The development of infrastructure required to extract, transport and refine Venezuela’s predominantly heavy crude could also take years, meaning the agreement may not result in an immediate reduction in US gasoline prices.
Washington has been seeking to secure reliable supplies of Venezuelan crude while encouraging US investment in the country’s energy industry. The move comes as the Trump administration faces pressure ahead of the November midterm elections to address rising gasoline prices.
The United States is also exploring options to replenish its Strategic Petroleum Reserve, including potential crude-oil swaps with domestic producers.
Venezuela nationalised its oil industry in the 1970s, placing state-owned PDVSA at the centre of the sector. Under former President Hugo Chavez, government control increased further, with foreign producers required to participate in state-led joint ventures and several assets later expropriated.
Venezuelan oil production subsequently declined sharply under Nicolas Maduro amid economic turmoil, underinvestment and international sanctions.
The proposed US-backed investment drive could therefore mark a significant shift in Venezuela’s oil industry, but its ultimate impact on production, investment and global oil markets will depend on the final terms, legal framework and pace of infrastructure development.
Story by Reuters
