Trump Unveils Massive Oil Deal with Venezuela, But Experts Warn of Long-Term Challenges

President Donald Trump announced what he called 'the biggest oil deal in history' between the US and Venezuela, which could draw $100 billion in investment and yield over $209 billion in taxes for Caracas. The deal gives the US a 55% effective output of a new private company that will operate 17 oil fields with a reported potential of 65 billion barrels.

The agreement was negotiated by Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, and Venezuela's acting president Delcy Rodríguez. The deal gives the US an ownership stake in the company and the right to buy oil at cost, which will be used for the US strategic oil reserves along with the military.

Venezuela's acting president described the deal as a step toward economic recovery that will modernize the country's oil industry. However, experts have warned that Venezuela's dilapidated oil infrastructure will take years and billions of dollars to repair, making it unlikely that production will increase quickly.