U.S. enters into oil agreement with Venezuela, Trump says

• The deal involves Secretary of State Marco Rubio and Defense Secretary Pete Hegseth working with Venezuela's interim leadership through a private business partnership
• Venezuela currently produces 1.25 million barrels per day, with its deteriorated energy industry requiring American investment to expand output
• The agreement addresses pressure on the Trump administration over rising gasoline prices before midterms and helps replenish the Strategic Petroleum Reserve

U.S.-Venezuela Oil Agreement Summary

Key Development:

President Donald Trump announced Friday that the U.S. has secured an oil agreement with Venezuela, obtaining majority U.S. control of over 65 billion barrels of proven oil reserves at no cost to taxpayers. The agreement would more than double American oil reserves.

Political Context:

Following the U.S. capture and removal of former President Nicolas Maduro in January, Washington has worked with "Interim President" Delcy Rodriguez through a public-private partnership. Secretary of State Marco Rubio and Secretary of War Pete Hegseth directed negotiations.

Production Details:

Venezuela's energy industry currently produces approximately 1.25 million barrels per day of crude. The U.S. aims to secure stable crude flows for American refineries while promoting investment in Venezuela's deteriorated OPEC energy infrastructure.

Market Implications:

The Trump administration faces pressure ahead of upcoming midterm elections due to rising gasoline prices. This agreement could provide cheaper oil supplies and expanded output to ease price pressures. The deal also addresses U.S. efforts to replenish the Strategic Petroleum Reserve, with crude swaps with U.S. producers being considered.

Strategic Significance:

The agreement represents a major geopolitical shift, granting the U.S. access to substantial oil reserves in an OPEC member nation. Venezuela's oil sector has significantly deteriorated in recent years, requiring American investment and expertise to restore production capacity.

Timeline:

The announcement was made August 28, 2026, approximately seven months after Maduro's removal from power in January 2026.