Date: August 28, 2026
Reporter: Kim White
U.S. President Donald Trump has announced that the United States has entered into a major oil agreement with Venezuela that would give Washington and its private-sector partners majority control over more than 65 billion barrels of Venezuela's proven oil reserves.
Trump described the arrangement as a major strategic agreement involving the U.S. government, American businesses and Venezuela's interim government. The announcement represents a dramatic expansion of U.S. involvement in Venezuela's energy sector and could reshape the global oil market.
According to Reuters, Trump said the agreement was negotiated with the involvement of U.S. Secretary of State Marco Rubio and Secretary of War Pete Hegseth. He said the arrangement would not require direct costs to American taxpayers.
U.S. Seeks Greater Control of Venezuelan Oil
Venezuela possesses some of the world's largest proven crude oil reserves, but its petroleum industry has suffered years of underinvestment, declining production, sanctions and operational problems.
The agreement announced by Trump is intended to help rebuild the country's oil industry while securing long-term supplies of Venezuelan crude for U.S. refineries.
Trump has argued that increased access to Venezuelan oil could strengthen U.S. energy security and potentially help reduce fuel prices for American consumers.
The agreement could also help Washington replenish U.S. strategic oil supplies following disruptions in global energy markets caused by geopolitical conflicts and restrictions on major oil-exporting routes.
Details of Deal Remain Unclear
Despite the significance of the announcement, the Trump administration has released few details about the exact structure of the agreement.
It remains unclear which Venezuelan oil fields are covered, which private companies will participate, and precisely how the United States will maintain majority control over the reserves. Questions also remain about the legal framework governing the agreement and how it will interact with Venezuelan laws governing the country's natural resources.
Venezuela's constitution gives the state control over its oil resources, meaning the arrangement could face legal and political challenges inside the country.
Venezuela's Oil Industry Has Been Weakened
Venezuela's petroleum industry has experienced a prolonged decline. Years of inadequate investment, poor infrastructure, management problems and international sanctions have reduced the country's ability to produce and export crude at levels once seen from the world's largest oil-reserve holder.
The country's state oil company, PDVSA, has also faced significant operational and financial difficulties. The new U.S.-backed arrangement could bring American capital, technology and expertise into Venezuela's energy sector.
U.S. oil companies are expected to play an important role in efforts to restore production and modernize aging infrastructure.
Chevron Positioned to Expand Operations
The announcement comes as U.S. energy company Chevron is preparing to expand its operations in Venezuela.
Reuters reported separately that Chevron is close to finalizing an agreement that would restructure its Venezuelan joint ventures and give the company greater operational control.
The proposed arrangement would allow Chevron to expand its existing heavy-crude operation, Petropiar, into the Ayacucho 8 block in Venezuela's Orinoco Belt.
Chevron has already maintained a presence in Venezuela despite years of U.S. sanctions, making it one of the most experienced American companies operating in the country's oil sector.
The company's expanded role could provide a model for other U.S. energy companies seeking to return to Venezuela.
Major Shift in U.S.-Venezuela Relations
The agreement marks a dramatic change in relations between Washington and Caracas. For years, the United States imposed extensive sanctions on Venezuela's oil industry and targeted officials of the government led by former President Nicolás Maduro.
The political situation changed significantly after Maduro was removed from power by U.S. forces earlier this year. Venezuela is now led on an interim basis by Delcy Rodríguez, whose government has become a key participant in negotiations over the country's oil resources.
The latest agreement suggests that Washington is moving away from simply restricting Venezuela's oil industry and toward directly supporting and controlling its redevelopment.
Potential Impact on Global Oil Markets
The agreement could have significant consequences for global energy markets if Venezuela's production increases substantially. Additional Venezuelan crude entering international markets could increase global supplies and place downward pressure on oil prices.
The development comes at a time when oil markets remain highly sensitive to geopolitical disruptions, particularly the continuing conflict involving Iran and restrictions on shipping through the Strait of Hormuz.
Reuters reported that Brent crude recently settled at about $89.31 per barrel, while West Texas Intermediate stood at approximately $83.40 per barrel. Both benchmarks recorded weekly declines of more than 4% as markets reacted to developments surrounding global supply and demand.
A significant increase in Venezuelan production could therefore provide additional supply at a time when energy markets remain vulnerable to disruptions elsewhere.
U.S. Refineries Could Benefit
Venezuelan crude is particularly attractive to certain U.S. Gulf Coast refineries because their facilities are designed to process heavy grades of oil.
Increasing Venezuelan exports to the United States could therefore benefit refiners that have historically relied on heavy crude from Venezuela and other foreign suppliers.
The arrangement could also reduce the distance oil needs to travel compared with supplies sourced from more distant producers.
For the Trump administration, that could translate into greater energy security and potentially lower transportation and refining costs.
Venezuela Could Receive Major Investment
For Venezuela, the agreement could provide badly needed investment in its struggling oil industry. The country's oil infrastructure requires extensive repairs and modernization after years of declining investment.
Foreign companies could provide financing, drilling technology, equipment and management expertise needed to increase production.
However, rebuilding Venezuela's oil sector will likely take significant time and billions of dollars in investment.
Industry analysts have previously warned that Venezuela's aging infrastructure and damaged production facilities present major obstacles to rapidly increasing output.
Political and Legal Questions Remain
The agreement is also likely to generate controversy inside Venezuela. Critics could question whether an arrangement giving foreign companies and the United States majority control over Venezuelan oil reserves is consistent with the country's laws and national interests.
The Venezuelan government will face pressure to demonstrate that the agreement benefits the country's population while protecting national sovereignty over its natural resources. The legal structure of the arrangement will therefore be closely examined once more details become public.
China Could Lose Venezuelan Oil Supply
The deal could also affect China's energy interests. Before the latest changes in Venezuela's political and economic relationship with Washington, China had been an important destination for Venezuelan crude.
A long-term U.S.-Venezuela oil arrangement could redirect more Venezuelan crude toward American refineries and away from Chinese buyers. That could add another layer to the broader competition between Washington and Beijing over access to global energy supplies.
A New Chapter for Venezuela's Oil Industry
Trump's announcement represents one of the most significant developments in Venezuela's energy sector in years.
The United States is seeking to combine political influence, private investment and control of Venezuelan oil resources in an effort to rebuild the country's petroleum industry while strengthening America's energy position.
But major questions remain unanswered, including the exact companies involved, the legal structure of the agreement, the amount of investment required and how quickly Venezuela can restore production.
If successfully implemented, the agreement could transform Venezuela from a heavily sanctioned oil producer into a major energy supplier to the United States.
For now, the announcement marks the beginning of a potentially historic new phase in U.S.-Venezuela relations, with the country's enormous oil reserves once again at the center of international economic and geopolitical competition.