US secures control of Venezuelan oil
The US government has taken majority control of more than 65 billion bbls, accounting to one-fifth of Venezuela’s total oil reserves, President Donald Trump said.
IMAGE: Getty Images
Washington has planned to rebuild Venezuela’s struggling petroleum sector through a partnership with the private sector – unlocking a fresh crude supply to help slash domestic fuel prices, Trump said.
Since the ousting of Venezuela’s ex-President Nicolas Maduro, Washington has been pushing hard to secure a permanent flow of Venezuelan crude oil into US-operated refineries and promoting new US investment in Caracas’ oil industry.
State control over Venezuela's oil sector was established in the 1970s, cementing Petróleos de Venezuela (PDVSA) as the monopoly operator. The control intensified under President Hugo Chávez, forcing global oil companies to enter partnerships with PDVSA. Subsequent mismanagement during Maduro's regime accelerated the sector's decline.
Venezuela boasts one of the world's largest proven oil reserves but produces only about 1.25 million b/d, Reuters reported.
Venezuela is preparing to sign the official agreements next week, granting new oil exploration and production rights to several US oil companies, the report added.
US claims agreement is a win-win for both countries
The oil will be used to stock up US Strategic Petroleum Reserves (SPR), Trump said, stopping short of disclosing further details of the agreement, the oilfields or companies involved.
“One of the things I am going to do with the Venezuelan Oil is fill up the Strategic National Reserves which… has been virtually emptied,” Trump said on social media platform Truth Social.
US secretary of state Marco Rubio described the deal as a “huge win” for both countries, securing stable reserves and low-cost oil in the US.
Washington has been exploring different ways to refill its depleting SPR, evaluating strategies such as direct crude exchanges with domestic US oil companies.
The US SPR stands at around 290 million bbls as of 21 August, according to US Energy Information Administration (EIA) data.
“For the Venezuelan people, this deal will bring nearly $100 billion in private investment… and drive the reconstruction of Venezuela's economy,” Rubio said on X.
By Aparupa Mazumder
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