Trump Secures Deal with Venezuela for Access to Billions of Barrels of Oil
US President Donald Trump announced on social media that his administration has entered into an agreement with Venezuela to take control of its vast oil reserves. The deal, negotiated by Secretary of State Marco Rubio and Defense Secretary Pete Hegseth, gives the US a 55% effective output in a new private company created to develop the reserves.
The agreement involves the development of 17 fields with a proven potential of 65 billion barrels, which could draw $100 billion in investment into Venezuela's oil industry and yield over $209 billion in taxes for Caracas. The deal allows the US to partner with an unnamed private operator to create a new company that would have 100-year rights to develop the oil fields.
The agreement has been met with some caution, as experts warn that repairing and expanding infrastructure takes years and requires billions of dollars. Trump faces mounting pressure to address high gas prices, which stood at $4.09 a gallon in the US on Friday, according to AAA.