Trump unveils historic oil deal with Venezuela
Donald Trump, the president of the United States, announced the “biggest oil deal in world history” with Venezuela on Friday. The United States will have majority control over more than 65 billion barrels of known crude oil reserves thanks to the historic deal with Venezuela. “The United States of America has just entered into an Agreement with the Country of Venezuela on, THE BIGGEST OIL DEAL IN WORLD HISTORY! At my direction, Secretary of State Marco Rubio, and Secretary of War Pete Hegseth, working closely with Highly Respected Interim President of Venezuela, Delcy Rodriguez, and, through a partnership with private business, have secured majority U.S. control of more than 65 BILLION BARRELS of proven Oil Reserves in Venezuela, at no cost to the American Taxpayer,” he said.
According to the president, the agreement was secured “at no cost to the American Taxpayer” and will “more than double” total American oil reserves. The administration asserts that the significant increase in the US oil supply will lead to a long-term reduction in domestic petrol prices, while also aiding Venezuela’s economic recovery. “This Historic Transaction MORE THAN DOUBLES American Oil Reserves, greatly increases our Oil Supply, and will substantially lower Gas Prices for all Americans, long into the future, while helping to continue to set Venezuela on a course toward Tremendous Success and Great Prosperity. This Transaction will greatly strengthen the already growing relationship between Venezuela and the United States! Thank you for your attention to this groundbreaking matter,” added Trump.
In an effort to stabilise the South American country’s energy industry, the United States has been applying severe diplomatic pressure, enforcing sanctions, and closely monitoring Venezuelan oil exports for several months. The agreement follows a nine-month interval since a U.S. military operation, authorised by Trump, resulted in the capture of Venezuelan leader Nicolas Maduro, who was subsequently transferred to the U.S. on charges of federal narcoterrorism and drug trafficking. It also arises as the administration encounters pressure regarding petrol prices, coinciding with the six-month mark of the war in Iran, and following the decline of the U.S. Strategic Petroleum Reserve to below 300 million barrels in early August, a reduction of over 100 million barrels since January.
Trump had previously suggested a reinstatement of U.S. oil companies in Venezuela after the removal of Maduro, contending that U.S. assets were appropriated during Hugo Chavez’s nationalisation of foreign-owned properties. Venezuela possesses an estimated 303 billion barrels of crude oil, accounting for approximately 17% of the global supply according to the EIA. However, its production is limited to around 1% of worldwide output, primarily due to its deteriorating infrastructure.
