President Donald Trump announced a sweeping agreement with Venezuela that will give the United States control over more than 65 billion barrels of proven oil reserves, potentially more than doubling American reserves and strengthening U.S. energy security.
Read more U.S. Strikes Iranian Military Targets to Stop New Mines in Strait of Hormuz
Trump said the agreement would “substantially lower Gas Prices for all Americans,” as the Iran war has disrupted global energy supplies and pushed fuel prices higher.
Under the agreement, the U.S. government will hold a 55 percent controlling interest in a joint venture with an experienced private operator in Venezuela, a U.S. official told CBS News. Venezuelan interim President Delcy Rodríguez has granted the venture a 100-year concession to operate 17 strategic oil fields.
Rodríguez said the agreement would remain in force for 25 years and target an increase in Venezuelan production to 1.5 million barrels per day.
The deal calls for more than $100 billion in private investment and could generate more than $209 billion in taxes for Venezuela, according to Rodríguez.
Secretary of State Marco Rubio called the agreement “a huge win for both the American and Venezuelan people.”
“For the Venezuelan people, this deal will bring nearly $100bn in private investment, support thousands of high-paying jobs and drive the reconstruction of Venezuela’s economy,” Rubio said.
Read more Morning Greatness: Google Adopts Trump’s ‘Lake America’ Name as Canada Dispute Grows
Trump said Rubio and Defense Secretary Pete Hegseth negotiated the agreement with Venezuelan leaders through a partnership with private businesses. He said the arrangement would come “at no cost to the American Taxpayer.”
Venezuela holds an estimated 303 billion barrels of proven oil reserves, the world’s largest, but years of socialist mismanagement, deteriorating infrastructure and U.S. sanctions have left production far below its late-1990s peak.
The agreement follows the January capture of former Venezuelan President Nicolás Maduro, who was brought to the United States to face federal drug charges.
Questions remain about how quickly the deal could affect American consumers. Venezuela’s heavy crude requires specialized refining, while rebuilding the country’s deteriorated oil infrastructure could take years.
The agreement’s full text has also not been released, prompting questions about its legal status under Venezuelan law.
Read more Three Rings, One Tent, No Ringmaster
