Trump Seals Historic Oil Deal with Venezuela

US President Donald Trump announced on social media that his administration has entered an agreement with Venezuela to take control of a significant portion of the country's vast oil reserves. The deal grants the US majority control over more than 65 billion barrels of proven oil reserves through a partnership with private business.

The agreement allows for the creation of a new private company, in which the US will have a 55% effective output stake, including an ownership stake and rights to buy oil at cost. This partnership would give the US access to Venezuela's oil fields and provide a significant boost to global oil production.

Venezuela has one of the largest oil reserves in the world, with an estimated 303 billion barrels of crude oil in the ground, about 17% of the world's supply. However, due to dilapidated infrastructure, the country only produces about 1% of the world's oil.

The agreement could draw $US100 billion ($139b) in investment into Venezuela's oil industry and yield over $US209 billion ($291b) in taxes for Caracas. The US has tapped its strategic petroleum reserves, which have fallen below 300 million barrels since the start of this year.