Donald Trump says a new deal with Venezuela could give the US control over more than 65 billion barrels of proven oil reserves and help bring down petrol prices.
A huge oil deal between the United States and Venezuela is already drawing attention far beyond the energy industry.
The United States has struck a massive agreement to control over 65 billion barrels of Venezuela’s proven oil reserves. President Donald Trump announced the deal late Saturday, framing it as a move that will more than double American reserves and bring immediate relief to drivers facing spiking fuel costs.
Venezuela’s interim President, Delcy Rodríguez, echoed the optimism. She stated the 25-year agreement aims to boost crude output to 1.5 million barrels per day, bringing over $100 billion in private investment to a country whose energy infrastructure has crumbled over the last decade.
Under the reported terms, the US government will retain 55% control of a joint venture, granting it a 100-year concession to operate in strategic oil fields.
But the math on the ground is complicated.
Venezuela’s reserves are mostly “heavy, sour” crude. It is thick, difficult to refine, and requires specialized infrastructure that has largely fallen into disrepair.The US, by contrast, produces “light, sweet” oil, which is much easier to turn into standard petrol.
Analysts are also raising immediate red flags about the operational reality.
Henrique Capriles, a moderate opposition lawmaker in Venezuela, pointed to the “opacity and corruption” of the government, demanding clarity on the constitutional basis of the agreement.
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Energy consultant David Goldwyn noted there is “no precedent” for the US government leasing foreign oil fields in this manner. He cited Venezuela’s weak power grid and limited export capacity as massive hurdles.
“It is hard to see how this kind of arrangement would accelerate investment at any material scale,” Goldwyn said.
Rachel Ziemba, an analyst at the Center for a New American Security, was equally blunt about the timeline, noting it is unlikely to have any material impact on global oil supplies in the next month, or even the next year.
Trump has secured a deal that he calls historic. The harder question may be whether it can actually deliver the oil, investment and cheaper fuel he is promising.
Promise Idoko is Junior Reporter working with moderncrux He covers global politics and international affairs. Based in Nigeria,
