US Nears Deal for 90 Billion Barrels of Venezuelan Oil Fields

The Trump administration is negotiating an agreement that would give American companies ownership stakes in Venezuelan oil fields holding 90 billion barrels of proven reserves.

The Trump administration is closing in on a deal with Venezuela's interim government that would give US firms ownership stakes in oil fields holding 90 billion barrels of reserves, two US officials told Axios.

"Calling this deal huge would be an understatement. It is massive," one US official told the publication.

The fields represent a slice of Venezuela's roughly 300 billion barrels of proven reserves — the world's largest — yet would be enough to more than double US proven oil reserves if the deal closes. Negotiations are led by Secretary of State Marco Rubio and Venezuela's acting president Delcy Rodriguez, with Deputy White House Chief of Staff Stephen Miller playing a significant role.

The arrangement would mark a milestone in the administration's "Donroe Doctrine" strategy of US energy dominance across the Western Hemisphere, arriving as the US Strategic Petroleum Reserve sits at a 40-year low and Brent crude trades above $90 a barrel after conflicts in Iran and Ukraine rattled global supplies.

The fields in question were previously controlled by former Venezuelan insiders, several of whom have since been indicted, alongside interests once tied to China. Under the proposed structure, Venezuela's government would not simply hand over its resources — in exchange for granting the US a stake, private companies including American firms would develop the fields and channel more oil revenue back to Caracas.

Officials are navigating the optics of the arrangement, wary of criticism that Rodriguez could be seen as giving away Venezuela's natural resources. "We're going out of our way to show how this will benefit the people of Venezuela, because it will," one official said.

The urgency reflects a strained supply picture. The US Strategic Petroleum Reserve has dropped to its lowest level in roughly 40 years, while conflicts in Iran and Ukraine have pushed Brent crude above $90 a barrel and rattled global oil markets.

A Defining Moment for Trump's Energy Agenda

Trump reportedly began exploring ways to secure an American stake in Venezuelan oil even before authorizing the January 3 operation that led to the capture of former leader Nicolas Maduro, who faces narco-terrorism charges in New York. Venezuela's once-thriving oil industry fell into disrepair over years of what officials call socialist mismanagement under Maduro and his predecessor Hugo Chavez, who first took power in 1999.

The energy relationship has already deepened. About half of Venezuela's crude output currently flows to US refineries, according to the US Energy Department, while Washington ships more than 100,000 barrels a day of naphtha to blend with the country's heavier crude. Venezuela expects production to reach 1.245 million barrels a day by the end of August, with exports up 19.7 percent this year.

What's Next

Energy Secretary Chris Wright plans to visit Venezuela next week as his department studies ways to raise production by US firms. A firm date for any agreement remains uncertain.

The deal's significance extends beyond a single energy investment: the US would shift from being one of Venezuela's main crude buyers to a direct holder of local oil assets and a participant in production. For global markets, bringing US management to fields that have underproduced for years could add supply capacity at a time when the SPR is depleted and geopolitical risk premiums are elevated.

If the deal closes, US energy companies gain new overseas assets while Washington deepens its grip on the energy sector of the world's largest reserve holder. The arrangement also gives Venezuela a path to revive production through foreign capital — a model that could reshape how the hemisphere's oil resources are developed.

This article is for informational purposes only and does not constitute investment advice.