President Donald Trump said a new 25-year energy agreement with Venezuela will give the United States access to more than 65 billion barrels of proven oil reserves, with Venezuelan crude slated to help replenish depleted U.S. strategic stockpiles.
By yourNEWS Media Newsroom
President Donald Trump announced Sunday that the United States has reached a sweeping oil agreement with Venezuela that he says will give Washington control over more than 65 billion barrels of the country’s proven petroleum reserves while helping replenish America’s strategic oil stocks.
Trump said part of the Venezuelan production will be directed toward rebuilding the Strategic Petroleum Reserve, which he accused former President Joe Biden of drawing down excessively during his administration.
In a social media post, Trump said the replenishment effort would begin soon.
“One of the things I am going to do with the Venezuelan Oil is fill up the Strategic National Reserves which, because of Sleepy Joe Biden, has been virtually emptied. The “topping out” process will begin very shortly, and is a Gift from Venezuela to the People of the United States.”
Trump also said the broader agreement would more than double U.S. oil reserves under American control and “substantially lower Gas Prices for all Americans,” according to a BBC report.
The agreement represents a major expansion of U.S. involvement in Venezuela’s oil sector following the dramatic political changes that began with the U.S. capture of then-President Nicolás Maduro in January.
Maduro was taken into U.S. custody to face drug charges in New York, after which Delcy Rodríguez, his former vice president, became Venezuela’s interim president with U.S. backing.
Rodríguez confirmed the new energy arrangement during a late-night address Saturday and presented it as an important component of Venezuela’s economic recovery.
She said the agreement with the United States would remain in effect for 25 years.
Venezuela possesses the world’s largest proven oil reserves, making the arrangement potentially significant for both countries’ energy sectors if production can be increased and the crude brought efficiently into international markets.
Trump had previously pledged to make use of Venezuela’s enormous petroleum resources following Maduro’s removal.
Under the agreement, the U.S. government will hold a 55% controlling interest in a joint venture operating with what an American official described as an “experienced private operator in Venezuela,” according to information provided to CBS News.
The structure would give the United States majority control of the venture while relying on private-sector expertise to manage production and related operations inside Venezuela.
Trump is presenting the agreement as serving several domestic objectives at once: rebuilding emergency petroleum reserves, expanding the amount of oil effectively available to the United States and putting downward pressure on gasoline prices.
The Strategic Petroleum Reserve is intended to provide the country with an emergency supply of crude oil during severe disruptions in energy markets.
Trump has repeatedly criticized Biden’s use of the reserve, arguing that releases during the previous administration left national inventories substantially lower than they should have been.
His latest announcement indicates Venezuelan crude will now play a direct role in his administration’s effort to restore those stocks.
At the same time, Trump says the scale of Venezuela’s reserves could materially increase the amount of petroleum accessible under U.S.-controlled arrangements.
More than 65 billion barrels of proven reserves would represent an enormous quantity of crude, although the amount that can ultimately be produced will depend on infrastructure, investment, operating conditions and the implementation of the new agreement.
For Venezuela, Rodríguez has characterized the deal as part of an economic revival after years of political turmoil, sanctions and deterioration within the country’s energy industry.
The 25-year term would make the arrangement a long-term component of Venezuela’s energy policy rather than a short-term oil transaction.
For the United States, the agreement marks a sharp change in the relationship with a country whose oil industry had long been constrained by hostile relations with Washington.
Trump’s announcement suggests his administration intends to make Venezuelan petroleum a significant part of its broader energy strategy, beginning with the replenishment of America’s strategic reserves.
The president said that process will begin “very shortly,” while also promising the broader deal will increase American oil supplies and help reduce fuel costs for consumers.
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