Trump Announces Historic Oil Deal with Venezuela

US President Donald Trump announced an agreement between his administration and Venezuela's interim government that grants the US majority control over more than 65 billion barrels of Venezuelan oil reserves.

The deal, described as the 'biggest oil deal in world history', would give the US majority control over approximately 100-year concession to operate oil fields containing about 65 billion barrels of proven reserves. This partnership with private business is expected to come at no cost to US taxpayers and has the potential to more than double US oil reserves.

The agreement, also supported by Secretary of State Marco Rubio, aims to bring nearly $100 billion in private investment, create thousands of high-paying jobs, and support the reconstruction of Venezuela's economy. Venezuelan interim President Delcy Rodriguez described it as a 'historic' deal that would contribute to Venezuela's economic recovery.

US energy companies are expected to benefit from this agreement, particularly Chevron, which has maintained a significant presence in Venezuela despite years of underinvestment and sanctions. However, the potential impact on global and US oil supplies is likely to take time to materialize due to Venezuela's ageing infrastructure and limited production capacity.