Trump promotes US stake in Venezuelan oil to lower gasoline prices

President Trump took to Truth Social to announce what he called “THE BIGGEST OIL DEAL IN WORLD HISTORY,” a sweeping agreement that would give the US a majority stake in 65 billion barrels of Venezuelan proven oil reserves through a new private joint venture. The pitch to Americans: more oil flowing into the country means lower gasoline prices and beefed-up strategic reserves.

The deal, unveiled on August 28-29, would grant the US an effective 55% interest in the venture, which could become the second-largest private oil company on the planet by reserves. For context, 65 billion barrels is roughly equivalent to the entire proven reserves of Libya, a country that has spent decades as a major OPEC producer.

What the deal actually looks like

The agreement calls for more than $100 billion in private investment flowing into Venezuela’s battered oil sector. None of that comes from US taxpayers directly, a detail the administration has been eager to highlight.

Venezuela stands to collect upwards of $209 billion in tax revenue from the venture over its lifetime. In return, the US secures provisions to purchase oil at cost for its Strategic Petroleum Reserve and military needs, essentially locking in a discount pipeline for government consumption.

Secretary of State Marco Rubio and Defense Secretary Pete Hegseth were both involved in the negotiations. The deal was brokered in part through Venezuelan businessman Alejandro Betancourt López, who served as an intermediary between Washington and Caracas.

The agreement arrives at a moment when American drivers are feeling genuine pain. US gasoline prices currently average roughly $4.08 per gallon, driven higher by global supply disruptions tied to the ongoing conflict with Iran.

The Maduro factor and Venezuela’s new reality

The deal follows a US military operation in January 2026 that resulted in the capture of Nicolás Maduro, ending his contested grip on power. Interim President Delcy Rodríguez has since taken the reins, and the Trump administration has moved quickly to reshape the bilateral relationship.

Washington lifted certain sanctions on Venezuela’s energy sector to clear a path for investment. Venezuela sits atop the world’s largest proven oil reserves, larger even than Saudi Arabia’s, but decades of mismanagement under Maduro’s government and the preceding Chávez era left much of that potential stranded underground.

At its peak in the late 1990s, Venezuela was producing around 3.5 million barrels per day. By the time Maduro was removed, output had cratered to a fraction of that figure. Pipelines rusted, refineries went offline, and skilled workers fled the country by the millions.

The gap between announcement and impact

Energy analysts and infrastructure experts have been clear: significant production increases from Venezuelan fields will take years, not months, potentially extending beyond Trump’s current presidential term.

Foreign companies that invested in the country before, including major players like ExxonMobil and ConocoPhillips, saw their assets nationalized. Any private consortium putting $100 billion on the table will want ironclad protections that Caracas may not yet be in a position to guarantee.

The deal’s most immediate effect may be geopolitical rather than economic. By locking up a majority stake in one of the world’s largest oil reserves, the US would significantly reduce China’s and Russia’s ability to secure Venezuelan crude for themselves.

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