Agreement could give the United States access to one of the world’s largest pools of petroleum reserves as Trump promises lower gas prices, but production increases could take years
President Donald Trump announced Friday night that the United States has reached an extraordinary oil agreement with Venezuela that he says will place more than 65 billion barrels of proven Venezuelan petroleum reserves under majority U.S. control.
Trump, writing on Truth Social, called the agreement “THE BIGGEST OIL DEAL IN WORLD HISTORY” and said Secretary of State Marco Rubio and Defense Secretary Pete Hegseth negotiated the arrangement with Venezuela’s interim president, Delcy Rodríguez, and private-sector partners. The screenshots provided to The Maine Wire match the language contained in Trump’s verified Truth Social post.
“At my direction,” Trump wrote, the administration and its partners had “secured majority U.S. control of more than 65 BILLION BARRELS of proven Oil Reserves in Venezuela, at no cost to the American Taxpayer.”
The size of the agreement is difficult to overstate.
The U.S. Energy Information Administration reported that the United States held roughly 46 billion barrels of proved crude oil and lease-condensate reserves at the end of 2024. If the 65 billion barrels covered by the Venezuelan agreement are ultimately available to the United States as Trump describes, the amount would exceed America’s currently reported domestic proved reserves.
Venezuela itself sits on an estimated 303 billion barrels of proven crude reserves, approximately 17 percent of the world’s total, according to the EIA. Much of that petroleum is extra-heavy crude concentrated in the Orinoco Belt and requires substantial infrastructure, investment and technical expertise to extract and process.
Deal Covers 17 Venezuelan Oil Fields
More details emerged following Trump’s announcement.
According to the Associated Press, the agreement involves development of 17 Venezuelan oil fields with approximately 65 billion barrels of proven potential. Venezuela says the projects could attract roughly $100 billion in investment while generating more than $209 billion in taxes for the South American country.
A U.S. official told the AP that the United States would partner with an unnamed private operator to establish a new private company with 100-year development rights. The United States would receive an effective 55 percent share of the company’s output through a combination of ownership and rights to purchase oil at cost. Some of that petroleum is expected to be used to replenish the Strategic Petroleum Reserve and supply the U.S. military.
Reuters reported that the targeted fields are located in Venezuela’s Orinoco Belt and Lake Maracaibo regions and that additional agreements granting oil exploration and production rights, particularly to American companies, are expected.
Rubio described the agreement as a victory for both countries, saying it could deliver stable, lower-cost petroleum to the United States while bringing billions of dollars of private investment into Venezuela. Rodríguez, meanwhile, said development of the 17 fields could substantially increase Venezuelan production and help modernize the country’s battered petroleum industry.
For Maine, the Gas Pump Matters
Trump’s announcement comes at a particularly significant moment for Maine families.
AAA reported Saturday that the average price for regular gasoline in Maine stood at $4.12 per gallon, compared with roughly $3.13 one year ago. Diesel averaged approximately $5.66 per gallon.
Heating oil is another concern as Maine moves toward fall and winter.
The Maine Department of Energy Resources reported an average statewide heating-oil price of $5.15 per gallon as of Aug. 24, with some dealers charging as much as $5.55.
That makes Trump’s promise to “substantially lower Gas Prices for all Americans” particularly consequential in a state where transportation and home heating costs consume a significant share of household budgets.
But Mainers should not expect to wake up next week to dramatically cheaper fuel.
Venezuela currently produces roughly 1.25 million barrels per day despite possessing the world’s largest proven petroleum reserves. Years of underinvestment, deteriorating infrastructure, political instability and sanctions have left the country’s petroleum industry operating far below its potential.
Energy analysts cautioned that bringing substantial new Venezuelan production online could take years. Infrastructure must be repaired, power and transportation capacity expanded, and companies convinced that the legal and political environment is stable enough to justify billions of dollars in investment.
There are also unanswered legal questions. Reuters reported that analysts are examining whether a U.S.-controlled arrangement of this magnitude is compatible with Venezuela’s constitution and recently revised hydrocarbons laws. Trump’s initial announcement did not identify all of the companies involved or explain precisely how the United States would exercise control over the reserves.
A Massive Shift in American Energy Strategy
The agreement also comes as Washington deals with continuing turmoil in global energy markets.
The Strategic Petroleum Reserve recently dropped to approximately 290 million barrels, its lowest level since 1982, after the United States drew on the stockpile amid disruptions in global petroleum supplies.
Meanwhile, the continuing conflict with Iran and disruptions surrounding the Strait of Hormuz have kept pressure on world oil markets. The White House said this week that U.S. forces have been escorting commercial vessels through the strait as Washington attempts to keep international energy supplies moving.
The Venezuela agreement could eventually give the United States something Washington has sought for decades: enormous petroleum reserves in the Western Hemisphere with American companies playing a dominant role in extracting and distributing them.
Whether that translates into dramatically cheaper gasoline and heating oil will depend on how quickly barrels actually begin flowing.
For now, however, the numbers are staggering: more than 65 billion barrels, 17 oil fields, potentially $100 billion in private investment and an American majority stake in what could become one of the largest petroleum ventures on Earth.
And for Mainers staring at $4 gasoline and preparing for another expensive heating season, what happens thousands of miles away in Venezuela could eventually be felt right here at home.
