The United States has reached an agreement with Venezuela granting American entities control over more than 65 billion barrels of the country’s proven oil reserves, a development President Donald Trump described as the “biggest oil deal in world history.” The announcement came on August 29, 2026, amid domestic concerns over rising fuel prices exacerbated by ongoing conflict in Iran and ahead of the U.S. midterm elections.
Under the arrangement, a U.S.-affiliated company, reportedly involving Venezuelan businessman Alejandro Betancourt López, will lead the development of 17 strategic oil fields. According to U.S. officials, the deal provides the United States with majority control—approximately 55 percent—of a joint venture with a private operator in Venezuela. The partnership reportedly includes a 100-year concession to manage these oil assets.
President Trump characterized the agreement as a strategic move to more than double American oil reserves and significantly increase the nation's oil supply. He asserted the deal would lower gasoline prices for American consumers with no expenditure from U.S. taxpayers. Secretary of State Marco Rubio highlighted the expected influx of over $100 billion in private investment, forecasting thousands of high-paying jobs for both American and Venezuelan workers. Rubio praised the deal as a success of the “America First” policy, emphasizing energy security within the Western Hemisphere.
Venezuelan interim President Delcy Rodríguez welcomed the agreement as a “historic” initiative that could substantially aid the country’s economic recovery. She stated the deal would generate an estimated $209 billion in revenue for Venezuela and contribute to the modernization of its oil industry. Rodríguez described the investment as a key driver for national economic growth and enhanced energy stability in the region.
The terms and specific details of the arrangement remain largely undisclosed, with official texts of the agreement not publicly available. This has raised questions about the legality and sovereignty implications of the U.S. exerting control over Venezuelan oil resources. Venezuela’s government has historically maintained exclusive ownership over its oil industry, and critics point to potential constitutional challenges within the South American nation.
The context surrounding the deal includes the controversial January operation in which U.S. special forces detained former Venezuelan President Nicolás Maduro, who continues to face charges in the United States. Following Maduro’s capture, the Trump administration stated it would oversee Venezuelan affairs until a “safe, proper and judicious transition” could occur, including control over the country’s oil export operations.
Observers note that while the official U.S. narrative frames the deal as a partnership to support Venezuela’s legal oil producers, it also represents a strategic attempt to reassert American influence in Latin America, where Russia and China have long maintained energy and political ties with Maduro’s government. Analysts suggest this move aims to curtail those countries’ regional foothold, although the practical and diplomatic complexities of the arrangement remain to be seen.
Venezuela holds the largest proven oil reserves globally, estimated at approximately 303 billion barrels, though its oil production has declined significantly since the late 1990s due to economic and political turmoil. The new agreement calls for a substantial investment to revive the country’s oil sector and enhance overall energy output, aligning with U.S. interests in stabilizing global oil markets and reducing fuel costs domestically.