Venezuela Hands US Keys to 22% of World's Largest Oil Reserves

Venezuela has agreed to grant the United States access to nearly a fifth of its oil reserves, sparking widespread criticism and raising questions about Delcy Rodríguez's authority to make such a deal. The agreement, signed on August 28, 2026, gives US interests 55% effective control over 17 strategic fields containing an estimated 65 billion barrels of proven reserves.

The deal is structured as a public-private venture, with projected private investment exceeding $100 billion in return for tax revenue exceeding $209 billion. Rodríguez called it a 'historic milestone' and framed it as the catalyst for economic recovery and infrastructure rebuilding.

However, critics have slammed the deal from multiple angles, arguing that Rodríguez lacks constitutional authority to bind the nation to such a commitment and that the 100-year concession term is reminiscent of extractive arrangements Latin American nations sought to unwind in the past. The sovereignty question has also been raised, with some questioning whether the agreement requires legislative approval.

The deal could have significant market implications, with increased Venezuelan production potentially putting downward pressure on US gasoline prices and reshaping competitive dynamics among major oil-producing nations within OPEC.