Trump Announces US-Venezuela Oil Deal: 65 Billion Barrels

The U.S. has drawn down its Strategic Petroleum Reserve, which fell below 300 million barrels in early August, down more than 100 million barrels since the start of 2026. The U.S.-Israel war against Iran has slowed Gulf oil shipments through the Strait of Hormuz, a chokepoint that handled about 20% of global petroleum before the conflict.

Venezuela holds an estimated 303 billion barrels of crude oil in the ground, roughly 17% of the world's supply, according to the U.S. Energy Information Administration. Geologists say the reserves are largely mapped and known. Decaying infrastructure limits the country to about 1% of global output.

Persuading major U.S. oil companies to return faces obstacles after decades of infrastructure decay. Days after Maduro's capture, Trump gathered oil executives at the White House and urged them to re-enter Venezuela. Executives expressed interest but also caution based on past losses.

Darren Woods, CEO of ExxonMobil, the largest U.S. oil company, said at the time he considered Venezuela "un-investable." Trump has argued that his administration has brought stability to the country and that Venezuela stole U.S. oil when former president Hugo Chavez nationalised hundreds of foreign-owned assets decades ago.

Rodriguez, early in her interim presidency, signed a law to privatise Venezuela's oil sector, reversing a core tenet of the socialist movement that ruled for more than two decades. The White House did not reply to a request for details on the private sector partners involved in the arrangement.