WASHINGTON — The United States has secured majority control of 65 billion barrels of proven oil reserves in Venezuela under a newly announced energy agreement, with President Donald Trump stating that oil from the deal will be used to replenish the Strategic Petroleum Reserve (SPR), which recently fell to a 44-year low of 290 million barrels. The agreement, announced Friday, establishes a joint venture between the U.S. government and an unnamed private operator in Venezuela, granting Washington 55% effective control of the venture. The deal also includes 100-year concessions for oil fields and aims to increase Venezuela’s crude output to 1.5 million barrels per day (bpd).
Maduro’s prison photos surface as deal takes shape
Venezuela’s deposed leader Nicolás Maduro shared photographs of himself on Sunday from a New York prison, where he has been held since his capture by U.S. forces in January. Maduro, facing drug trafficking and firearms charges in the U.S., posted the images on social media alongside a message stating, “We will remain strong, calm and confident: God is with us.” The photos, taken on June 25, show Maduro in a gray tracksuit, appearing thinner than in previous images. His wife, Cilia Flores, was also detained in the same operation. The timing of the photos’ release coincided with the announcement of the U.S.-Venezuela oil deal, raising questions among observers about the circumstances of their publication.
Venezuela’s interim president hails ‘historic’ deal
Venezuela’s interim leader Delcy Rodríguez, who succeeded Maduro, described the agreement as a 25-year pact that would revive the country’s oil industry and economy. Rodríguez stated the deal targets 17 strategic oilfields and aims to boost production to 1.5 million bpd, while preserving Venezuela’s sovereignty over its natural resources. She emphasized that the project would generate jobs, infrastructure investment, and government revenue, with the U.S. providing capital and technology. Trump called the agreement “the biggest oil deal in world history” and claimed it would more than double American oil reserves and substantially lower gas prices for U.S. consumers.
Details of the U.S.-Venezuela oil venture
According to a U.S. official cited by CBS News, the joint venture will operate under a structure where the U.S. government retains 55% control through direct equity and guaranteed at-cost offtake agreements, meaning discounted oil purchases. The venture is expected to become the second-largest corporate holder of proven oil reserves globally, after Saudi Aramco. Trump credited Secretary of State Marco Rubio and Defense Secretary Pete Hegseth with negotiating the deal, asserting it comes “at no cost to the American taxpayer.” Rodríguez confirmed the agreement’s duration and production targets in a late-night address, framing it as a path to Venezuela’s economic revival.
Strategic implications for U.S. energy security
Analysts suggest the deal could diversify U.S. oil imports, support Gulf Coast refineries, and provide a buffer against future supply disruptions. Venezuela holds the world’s largest oil reserves, exceeding even Saudi Arabia’s, but decades of political instability and infrastructure decay have limited its production capacity. The U.S. has drawn down the SPR in recent years to address global supply disruptions, including the invasion of Ukraine and tensions with Iran. Trump stated that the Venezuelan oil would begin replenishing the SPR “very shortly,” though the timeline for tangible benefits to U.S. motorists remains uncertain. Rodríguez emphasized that the agreement preserves Venezuela’s control over its natural resources while fostering economic growth through foreign investment.
International reactions and unanswered questions
The deal’s announcement followed Maduro’s capture in a U.S. military operation in Caracas, which also led to the detention of high-ranking officials on corruption and drug trafficking charges. While Trump framed the agreement as a win for both nations, critics question the feasibility of rapidly increasing Venezuelan oil production and the long-term geopolitical implications of U.S. control over such a vast resource. The joint venture’s structure, including the identity of the private operator and the specifics of the 100-year concessions, has not been fully disclosed. Rodríguez’s assertion that the deal preserves Venezuela’s sovereignty contrasts with reports of U.S. majority control, highlighting potential areas of contention. The agreement’s impact on global oil markets and U.S. energy independence remains a subject of ongoing analysis.