Trump Says U.S. Secures Deal With Venezuela for 65 Billion Barrels of Oil Reserves: how 51 outlets framed it
Deal for Venezuelan Oil
Trump said the deal was negotiated by Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, and Venezuela’s acting President Delcy Rodríguez, and he wrote, “THE BIGGEST OIL DEAL IN WORLD HISTORY!”
Rodríguez’s government said the agreement involves the development of 17 fields with a proven potential of 65 billion barrels, and it said the agreement could draw $100 billion in investment and yield over $209 billion in taxes for Caracas.
A U.S. official familiar with the contours of the deal said the agreement allows the United States to partner with an unnamed private operator in Venezuela to create a new private company, and that Rodríguez granted the company 100-year rights to develop the oil fields.
The deal gives the United States 55% effective output of the new private company, including an ownership stake and rights to buy oil at cost, according to the U.S. official.
Rubio, Rodríguez, and Pressure
Rodríguez said the agreement “will have a significant impact on our nation’s revival,” and she also described the deal as moving toward consolidating Venezuela’s position as an energy-producing power.
Trump framed the agreement as a way to lower U.S. costs, writing, “will substantially lower Gas Prices for all Americans,” while CNN reported that the national average gas price sits at more than $4 a gallon.
Marco Rubio called the deal “a huge win for both the American and Venezuelan people,” and he said it would bring nearly $100 billion in private investment and support thousands of high-paying jobs.
The AP reported that Trump faces pressure to show he’s lowering oil costs, noting that the U.S. has tapped its strategic petroleum reserves, which in early August fell below 300 million barrels.
CNBC reported that the agreement comes as consumers grapple with spiking energy prices heading into the midterm elections, with the war with Iran roiling global crude trade.
What Comes Next
The U.S. official said the oil bought from the new company would go toward filling the U.S. strategic petroleum reserve and toward military use, while the deal also aims to increase oil supply as the war in Iran disrupts global crude flows.
AP reported that the U.S. strategic petroleum reserves fell below 300 million barrels in early August and that a significant drop in U.S. gas prices tied to the agreement should not be expected immediately.
CNN said the Iran war disrupted “a fifth of the world’s oil supply for six months,” and it reported that emergency reserves haven’t been this small since the early 1980s.
The Washington Post reported that the plan involves the U.S. taking more direct control over Venezuelan reserves as crime and steep logistical challenges discourage private investors, and it said the U.S. has gained a controlling stake in nearly a quarter of Venezuela’s untapped oil reserves.