US Secures Majority Control of 65 Billion Barrels of Venezuelan Oil in Historic Deal

A Deal Unlike Any Other

On Friday, August 29, President Donald Trump announced what he called "THE BIGGEST OIL DEAL IN WORLD HISTORY" — a sweeping agreement giving the United States majority control over more than 65 billion barrels of Venezuela's proven oil reserves. Venezuela's acting government confirmed the deal involves the development of 17 fields with a proven potential of 65 billion barrels. The announcement was dramatic, the details were sparse, and the geopolitical implications could hardly be larger.

Trump touted the agreement as coming "at no cost to" U.S. taxpayers, and said it more than doubles the U.S. oil reserve. A source familiar with the arrangement described it as a type of "public-private partnership" between the U.S., private companies, and Venezuela — not a purchase, but an equity stake. The deal gives the United States 55% effective output of the new private company, including an ownership stake and rights to buy oil at cost. If realized, the company would be the second largest corporate holder of proven reserves after Saudi Aramco.

The Complicated People and Politics Behind the Deal

Trump is facing increasing pressure as the midterms loom and gas prices have spiked because of the war with Iran, which the U.S. and Israel started six months ago. That political backdrop makes the timing of this announcement hard to ignore. Trump said the agreement was negotiated by Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, and Venezuela's acting President Delcy Rodríguez.

Multiple media reports, citing anonymous sources, indicate the U.S. government plans to work with North American Blue Energy Partners, a company owned by Alejandro Betancourt López, as the project's private Venezuelan operator. Betancourt López is a polarizing figure — his family controls Venezuela's second-largest private oil company, and he is also the subject of a Swiss arrest warrant related to a money laundering investigation. Senior U.S. officials reportedly intervened in that Swiss investigation as Betancourt was enlisted by the Trump administration to help assert control over Venezuela's government and oil sector. The project is also reported to have received financial backing from the Pentagon's Office of Strategic Capital, though both the White House and the Pentagon declined to identify the private operator involved.

Massive Potential, Massive Hurdles

The deal's scale is staggering on paper, but the path from announcement to actual barrels flowing is long and expensive. Many of the 17 fields have sat dormant for years, requiring enormous investment in infrastructure just to become operational. The deals are part of what Trump has described as a $100 billion effort to rebuild Venezuela's oil industry after decades of mismanagement and underinvestment under Maduro and his predecessor Hugo Chavez. Despite Venezuela having the world's largest proven crude oil reserves, it only produces on average about one million barrels a day — a fraction of its potential.

Meanwhile, Chevron is moving to deepen its own footprint. Chevron is negotiating to add two new oil fields to its Venezuela operations as the Trump administration expands its influence over the country's oil sector — and the company already accounts for about a fifth of Venezuela's oil production. In February 2026, Venezuela approved a reform of its Organic Law on Hydrocarbons, granting foreign companies greater control over their operations and introducing lower royalty rates, while formalizing an oil production-sharing model.

Venezuela Eyes the Exit From OPEC

Perhaps the most seismic side effect of this realignment is what it could mean for OPEC. Venezuela is considering whether it should quit OPEC, according to people familiar with the matter, and the idea has been a topic in conversations with U.S. officials, though no final decision has been made. Venezuela was one of five countries that founded OPEC in 1960, but it has effectively operated outside the group's production quota system for years, as decades of U.S. sanctions and domestic economic turmoil battered its oil industry.

A Venezuelan withdrawal from OPEC could further weaken the cartel's decades-long influence over global oil markets. This would follow the United Arab Emirates' official departure from the cartel on May 1, after nearly 60 years of membership. The broader picture is one of a rapidly reshaping global energy order — with Washington, not Caracas or Riyadh, increasingly calling the shots. Whether the 100-year deal delivers on its promises or gets mired in legal, financial, and logistical obstacles, one thing is clear: the geopolitics of oil will never look quite the same again.