The United States and Venezuela have entered into a historic oil agreement that could significantly alter global energy dynamics. President Donald Trump announced the deal on Friday, August 28, 2026, calling it the biggest oil deal in world history. The agreement, negotiated by Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, and Venezuela’s acting President Delcy Rodríguez, grants the U.S. access to vast oil reserves in Venezuela.
The deal involves the development of 17 oil fields with a proven potential of 65 billion barrels. According to Rodríguez’s government, the agreement could attract $100 billion in investment into Venezuela’s oil industry and generate over $209 billion in taxes for Caracas. Rodríguez predicted that the deal would have a significant impact on our nation’s revival.
Key Details of the Oil Agreement
The agreement allows the United States to partner with an unnamed private operator in Venezuela to create a new private company that will manage the reserves. The U.S. will have a 55% stake in the new company, including ownership and rights to buy oil at cost. This makes the company the second-largest corporate holder of proven reserves after Saudi Aramco.
Rodríguez granted the company 100-year rights to develop the oil fields. The oil bought from the new company will be used to fill the U.S. strategic petroleum reserve and for military purposes. Venezuela has one of the largest oil reserves in the world, with an estimated 303 billion barrels of crude oil, according to the U.S. Energy Information Administration.
The Geopolitical Context
The announcement comes nearly nine months after the U.S. military, under Trump’s direction, captured Venezuela’s then-President Nicolás Maduro and brought him to the United States to face federal narcoterrorism and drug trafficking charges. Trump faces mounting pressure to address high gas prices as the war in Iran reaches a six-month milestone with no conclusion in sight.
The U.S. has been tapping its strategic petroleum reserves, which fell below 300 million barrels in early August, down by more than 100 million barrels since the start of 2026. The average price of gas in the U.S. stood at about $4.09 a gallon on Friday, according to AAA. Experts have warned that a substantial boost in Venezuelan oil production will not happen quickly due to the need for infrastructure repairs and significant investment.
Challenges and Opportunities
Persuading big American oil companies to return to Venezuela could face challenges due to political uncertainty and decades of damaged infrastructure. Days after Maduro’s ouster, Trump gathered oil executives at the White House and called on them to rush back into Venezuela. Executives expressed interest but also caution given their past experiences in the country.
Darren Woods, CEO of ExxonMobil, the largest U.S. oil company, initially saw the country as un-investable. However, Trump has insisted that his administration has brought stability to Venezuela. Rodríguez, in one of her early moves after taking power, signed a law that opens the nation’s oil sector to privatization, reversing a bedrock tenet of the self-proclaimed socialist movement that has ruled the country for more than two decades.
Rubio said on X that the agreement would usher in billions in private investment into Venezuela and lead to lower gas prices in the United States. The deal is seen as a huge win for both the American and Venezuelan people according to Rubio. The oil bought from the new company would go toward filling the U.S. strategic petroleum reserve and toward military use.
