Venezuela oil deal gives US 55% output share

President Donald Trump has announced an oil agreement that would give the United States a 55% effective output share in a new venture controlling 65 billion barrels of Venezuelan reserves.

According to Trump’s Truth Social announcement, Secretary of State Marco Rubio and Defense Secretary Pete Hegseth negotiated the agreement with Venezuela’s interim President Delcy Rodríguez and private businesses.

Trump called the arrangement “the biggest oil deal in world history” and said it would give the United States majority control over more than 65 billion barrels of proven reserves at no cost to American taxpayers.

Rodríguez’s government said the planned venture would develop 17 strategic fields. A field list reviewed by Reuters placed the assets in the Orinoco Belt and the Lake Maracaibo region, two central parts of Venezuela’s oil industry.

Neither government has released the complete agreement, named the private operator, or explained how the United States would exercise control over reserves that remain subject to Venezuelan law.

Venezuela oil deal includes equity and at-cost crude

The Associated Press, citing an unnamed U.S. official familiar with the terms, reported that the United States and a private operator would form a new company in Venezuela. Rodríguez has granted the company development rights lasting 100 years, according to the official.

Under the proposed structure, the United States would receive 55% of the venture’s effective output. The arrangement includes an equity interest as well as the right to purchase crude at cost, but the official did not disclose the government’s exact ownership percentage.

Axios separately described the structure as a public-private partnership rather than a cash acquisition by Washington.

“It’s not a purchase. They’re giving us equity,” a U.S. government source told Axios.

The Pentagon’s Office of Strategic Capital would oversee the arrangement, according to the report. The office finances projects tied to U.S. national security, although the administration has not published documents explaining its authority or financial role in the Venezuelan venture.

Questions also emerged inside the administration immediately after Trump’s announcement. Axios reported that officials initially disagreed over whether the agreement had been completed before Rodríguez issued a statement supporting it.

“It’s going to happen. It’s just a question of when,” another U.S. source told the publication.

Venezuelan officials are preparing to sign exploration and production agreements with several companies next week, Reuters reported. U.S. firms are expected to receive priority, while a lease and auction model has also been discussed.

If formed on the stated terms, the company would control the second-largest proven oil reserve base held by a corporate entity, behind Saudi Aramco, the U.S. official told the Associated Press.

The agreement targets investment and US oil costs

Rubio said the projects could bring almost $100 billion in private investment to Venezuela, create thousands of jobs, and support the rebuilding of its oil industry.

“This deal is a huge win for both the American and Venezuelan people,” Rubio wrote on X.

Rodríguez projected that the venture would produce $209 billion in tax revenue for Venezuela. In a government statement, she said the investment would support the recovery of the country’s energy infrastructure and raise production from the 17 fields.

For the United States, crude purchased through the venture would be used to replenish the Strategic Petroleum Reserve and meet military needs, the U.S. official told the Associated Press.

Reserve stocks fell below 300 million barrels in early August, more than 100 million barrels below their level at the start of 2026, according to AP. Average U.S. gasoline prices stood near $4.09 per gallon on Friday, compared with $3.21 a year earlier, based on AAA data cited by the news agency.

Trump has faced pressure to lower fuel costs ahead of the November midterm elections. Rubio said stable supplies of lower-cost Venezuelan crude could reduce gasoline prices, although neither government has provided an output schedule.

Venezuela holds about 303 billion barrels of proven crude reserves, equal to roughly 17% of the world’s total, according to the U.S. Energy Information Administration. Despite its underground resources, the country currently produces about 1.25 million barrels per day after years of sanctions, underinvestment, and poor maintenance.

Much of Venezuela’s oil is heavy crude that requires specialized equipment and refining capacity. Pipelines, electrical systems, export terminals and upgraders would require billions of dollars in repairs before the 17 fields could add substantial supply, according to energy specialists cited by Reuters and AP.

ExxonMobil CEO Darren Woods called Venezuela “un-investable” during a White House meeting with oil executives after Nicolás Maduro’s removal in January. AP reported that executives showed interest in the country’s reserves but remained concerned about damaged assets and the history of government expropriation.

Lower oil prices could affect Bitcoin through inflation

An increase in Venezuelan output could affect crypto markets if it produces a sustained decline in oil and fuel costs, though no source has established that the agreement will deliver such an effect soon.

Energy costs feed into U.S. inflation through gasoline, transport, and production expenses. Lower inflation can give the Federal Reserve more room to reduce interest rates, while persistent price pressure can keep borrowing costs high and restrict liquidity available for Bitcoin and other risk assets.

As previously covered by crypto.news, a lasting fall in crude prices can lower direct fuel costs and reduce expenses across supply chains. The report noted that a one-day oil decline has little effect on inflation unless lower prices remain in place long enough to enter official data.

July’s latest PCE reading showed that the headline index rose 0.2% for the month and 3.7% from a year earlier, according to the U.S. Bureau of Economic Analysis. Core PCE also increased 0.2% monthly and remained at 3.3% annually, above the Federal Reserve’s 2% target.

Bitcoin has already shown sensitivity to energy prices and U.S. rate expectations during the Iran conflict. A July report found that rising oil pressure accompanied Bitcoin’s fall below $64,000 as disruptions around the Strait of Hormuz added to inflation concerns.

Venezuelan production, however, cannot replace impaired Gulf supply immediately. The Associated Press reported that oil flows through the Strait of Hormuz remain well below levels recorded before the six-month U.S.-Iran conflict, while the waterway previously carried about 20% of global petroleum supply.

Legal and political risks remain unresolved

David Goldwyn, president of Goldwyn Global Strategies, told Reuters that the agreement’s legal basis remains unclear under Venezuela’s constitution and hydrocarbons law.

Goldwyn said there was “no precedent for having the U.S. government enter into a lease to operate oil fields.” He also questioned whether the structure could overcome an unreliable power grid, weak export capacity and government discretion over energy projects.

Venezuela nationalized its oil industry in the 1970s and later forced foreign producers into ventures led by the state oil company PDVSA. Under former President Hugo Chávez, the government expropriated projects operated by U.S. companies, including ExxonMobil and ConocoPhillips.

Rodríguez opened parts of the industry to private ownership after becoming interim president, reversing rules that had kept the state at the center of oil production. Venezuelan opposition figures have challenged her authority and argued that a long concession involving national reserves would violate the constitution.

Her government took power after U.S. forces captured Maduro in January and transferred him to the United States to face federal narcoterrorism and drug-trafficking charges. Maduro remains in U.S. custody and has pleaded not guilty.