President Donald Trump announced Friday that the United States has secured majority control of more than 65 billion barrels of Venezuelan proven oil reserves through a new joint venture. He described the arrangement as the biggest oil deal in world history.

Secretary of State Marco Rubio and Defense Secretary Pete Hegseth negotiated the terms with Venezuela’s interim President Delcy Rodríguez. The pact covers 17 strategic fields located in the Orinoco Belt and Lake Maracaibo region.

Structure of the Agreement

The deal creates a public-private partnership rather than a direct government purchase of reserves. A U.S. official stated that the United States would receive equity in the venture along with rights to purchase crude at cost, resulting in a 55 percent effective share of output. Oversight would fall to the Pentagon’s Office of Strategic Capital.

Rodríguez granted the joint venture a 100-year development concession. Venezuelan authorities project nearly $100 billion in private investment and $209 billion in tax revenue from the projects. If formed as described, the company would control the second-largest proven reserve base of any corporate entity worldwide, after Saudi Aramco.

Neither government has released the full contract text, a complete field list, or the name of the private operator. Venezuelan officials are preparing to sign exploration and production agreements in the coming days, with U.S. firms expected to receive priority consideration.

Political Context and Timing

The announcement arrives roughly nine months after U.S. forces captured former President Nicolás Maduro in January 2026 on federal narcoterrorism charges. That operation installed Rodríguez as interim leader and opened the path for renewed energy discussions.

Venezuela holds approximately 303 billion barrels of proven reserves, the largest national total globally and about 17 percent of the world supply. Current production stands near 1.25 million barrels per day after years of sanctions, underinvestment, and infrastructure deterioration. Much of the crude is heavy Orinoco grade that requires specialized upgraders, pipelines, and power systems before it can reach international markets at scale.

Implications for Energy Markets and Inflation

U.S. gasoline prices recently hovered near $4.09 per gallon, while Strategic Petroleum Reserve stocks have fallen below 300 million barrels. Officials indicated that oil obtained through the venture could help replenish the reserve and support military needs. The announcement also comes amid ongoing disruptions to flows through the Strait of Hormuz linked to the U.S.-Iran conflict.

Increased Western Hemisphere supply could eventually ease pressure on global oil prices and reduce energy-driven inflation. Lower inflation readings would give the Federal Reserve greater flexibility on interest rates. Markets have already linked such macro shifts to risk assets, including Bitcoin and growth-oriented equities, though any meaningful production increase remains years away.

Infrastructure and Legal Hurdles

Energy specialists note that restoring output will demand substantial capital for repairs to pipelines, electrical grids, export terminals, and upgrading facilities. Some industry executives have previously described the operating environment as difficult due to past expropriations and weak infrastructure.

Legal questions persist. Analysts have pointed to uncertainties under Venezuela’s constitution and hydrocarbons law regarding a long-term concession involving the U.S. government. Opposition figures have labeled the arrangement unconstitutional. Political reversal risk remains a factor given the interim status of the current Venezuelan leadership.

In the near term, the deal functions primarily as a strategic positioning measure rather than an immediate source of additional barrels. Turning the 65 billion barrels of reserves into sustained production will require years of investment, technical work, and stable operating conditions.