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US President Donald Trump announced on Friday an unprecedented American move to take control of approximately one-fifth of Venezuela's massive oil reserves. The initiative bets on the ability of American companies to revitalize the struggling energy sector in the OPEC member state while securing a new source of crude that could help drive down US domestic fuel prices.

Without providing detailed specifics regarding the agreement with Venezuela, Trump stated that the United States has secured more than 65 billion barrels of proven Venezuelan oil reserves through a private-sector partnership.

Venezuelan leadership welcomed the agreement, stating it would significantly contribute to boosting the national economy and increasing government revenues.

Major Expansion of the US Role in Venezuela’s Oil Sector

The new agreement represents a massive expansion of the US footprint in the Venezuelan oil industry. It comes at a time when the Trump administration is actively seeking to revitalize the country's oil production and secure additional crude supplies for American refineries.

Venezuela boasts the world's largest proven oil reserves. However, the nation currently produces only about 1.25 million barrels per day—a volume that falls far short of its true potential following years of severe underinvestment, mismanagement, and international sanctions.