US Secures Control of 65 Billion Barrels in Venezuela Oil Deal
US President Donald Trump announced a major oil deal with Venezuela on Friday, stating it was the 'biggest oil deal in world history.' The agreement allows the US to take control of 65 billion barrels of Venezuela's oil reserves, which is estimated to be around 17% of the world's supply. Trump said the deal was negotiated by Secretary of State Marco Rubio and Defense Secretary Pete Hegseth, along with Venezuela's interim President Delcy Rodriguez.
The announcement comes as gas prices in the US have surged to an average of $4.09 a gallon, up from $3.21 at the same time last year. Trump has faced mounting pressure to address high gas prices, particularly after tapping into the US' strategic petroleum reserves, which fell below 300 million barrels in early August.
Venezuela has one of the largest oil reserves in the world, with an estimated 303 billion barrels of crude oil under its soil. However, due to damaged infrastructure, the country only produces about 1% of the world's oil. Trump has argued that his administration has brought stability to Venezuela and claimed that the country 'stole' US oil when former President Hugo Chavez nationalized hundreds of foreign-owned assets decades ago.
ExxonMobil CEO Darren Woods expressed interest in investing in Venezuela after Trump gathered oil executives at the White House, but also showed caution due to past experience. The White House did not provide details on private sector partners involved in the deal or how it would work.