The United States was in talks with Venezuela to take a major stake in the country’s oil fields, in a potentially transformative agreement that would give Washington greater influence over one of the world’s largest crude reserves. Bloomberg reported on August 27 that negotiators were discussing several structures, including a possible 100-year lease covering multiple Venezuelan oil fields, although the terms remained under negotiation and could still change.
The discussions have since moved rapidly toward a broader agreement. On August 28, President Donald Trump said the United States had secured majority control over more than 65 billion barrels of Venezuelan proven oil reserves through a new arrangement involving private business. Venezuelan authorities said the plan covers 17 fields and could attract about $100 billion in investment and generate more than $209 billion in tax revenue for Caracas.
US-Venezuela Oil Deal Could Reshape Energy Relations
The original Bloomberg report described negotiations between Washington and Caracas over a large U.S. stake in Venezuelan oil fields.
People familiar with the discussions said a 100-year lease for several fields was one of the structures being considered.
At that stage, the talks were still private and no final terms had been established.
The proposal represented a major expansion of U.S. involvement in Venezuela’s energy sector following the removal of former President Nicolás Maduro and the installation of an interim government led by Delcy Rodríguez.
US-Venezuela Oil Deal At A Glance
| Particular | Details |
|---|---|
| Countries | United States and Venezuela |
| Initial report | August 27, 2026 |
| Main issue | U.S. stake in Venezuelan oil fields |
| Potential structure initially discussed | 100-year lease |
| Fields ultimately identified | 17 |
| Proven reserves covered | More than 65 billion barrels |
| Potential investment | About $100 billion |
| Potential Venezuelan tax revenue | More than $209 billion |
| U.S. objective | Greater crude access and energy security |
| Venezuela’s objective | Investment and oil-sector revival |
The structure and terms could continue to evolve as implementation details are negotiated.
Trump Later Announced Majority U.S. Control
The situation changed significantly one day after Bloomberg’s report.
Trump announced on August 28 that the United States had entered an agreement with Venezuela giving it majority control of more than 65 billion barrels of proven oil reserves.
He described the arrangement as the “biggest oil deal in world history.”
According to reporting on the agreement, the U.S. would participate with a private operator in a new company responsible for developing 17 oil fields.
Reported Deal Structure
US Government
│
▼
Majority control / oil purchase rights
│
▼
New private oil company
│
├── US interests
├── Private operator
└── Venezuelan-linked business interests
│
▼
17 Venezuelan oil fields
│
▼
Production + investment
│
├── US crude supply
└── Venezuelan government revenue
The exact ownership structure has been described differently in early reports, reflecting the fact that details of the agreement were still emerging.
Venezuela Has The World’s Largest Proven Oil Reserves
The strategic importance of the deal comes from Venezuela’s enormous petroleum resources.
Venezuela has approximately 300 billion barrels of proven crude oil reserves, the largest national reserve base in the world.
Much of the country’s oil is concentrated in the Orinoco Belt, where the crude is particularly heavy and requires specialized infrastructure and processing.
Global Oil Reserve Comparison
| Country | Approx. Proven Oil Reserves |
|---|---|
| Venezuela | ~303 billion barrels |
| Saudi Arabia | ~268 billion barrels |
| Iran | ~208 billion barrels |
| United States | ~46 billion barrels |
The figures illustrate why access to Venezuelan fields could have strategic implications well beyond the two countries.
The Deal Covers 17 Oil Fields
The agreement reportedly focuses on 17 specific fields, rather than Venezuela’s entire oil reserve base.
The fields include undeveloped areas in the Orinoco Belt and mature fields around Lake Maracaibo.
Some of the assets have previously been operated or controlled by foreign companies, including Chinese interests.
Oil Fields Under Discussion
| Region | Characteristics |
|---|---|
| Orinoco Belt | Large heavy-oil resources, including undeveloped fields |
| Lake Maracaibo | Mature producing fields |
| Total fields | 17 |
| Proven reserves covered | ~65 billion barrels under announced agreement |
| Development challenge | Infrastructure and production investment |
The mixture of mature and undeveloped assets means the fields will not all contribute to production at the same pace.
Venezuela Needs Massive Investment
The biggest challenge is not access to crude reserves but turning those reserves into economically viable production.
Years of underinvestment have left Venezuela’s oil infrastructure in poor condition.
Some fields lack adequate pipelines, processing facilities and transportation infrastructure.
The Washington Post reported that several fields identified in the deal have little infrastructure, while facilities that do exist have suffered from years of neglect and equipment losses.
Venezuela’s Oil-Sector Challenges
| Challenge | Impact |
|---|---|
| Aging infrastructure | Lower production efficiency |
| Limited investment | Slow field development |
| Equipment deterioration | Higher operating costs |
| Pipeline constraints | Limits crude transportation |
| Security concerns | Raises project costs |
| Heavy crude | Requires specialized processing |
| Data problems | Makes investment planning harder |
This means the announced reserves cannot immediately translate into equivalent increases in oil production.
US Investment Could Revive Venezuelan Production
The agreement is intended to attract large-scale private investment into Venezuela’s petroleum sector.
Venezuelan authorities said the deal could attract approximately $100 billion in investment.
That capital would be used to develop fields, restore infrastructure and increase production.
Potential Investment Flow
US-backed oil agreement
│
▼
Private capital
│
▼
Field development
│
├── Drilling
├── Pipelines
├── Processing
├── Export infrastructure
└── Security
│
▼
Higher Venezuelan oil output
│
▼
Export revenue + taxes
However, major oil companies have historically been cautious about making large investments in Venezuela because of political, legal and operational risks.
US Wants More Control Over Venezuelan Crude
The deal also fits into Washington’s broader objective of controlling Venezuelan oil sales and increasing U.S. access to the country’s crude.
Since Maduro’s removal, the U.S. has eased some restrictions to allow American companies and oil-service providers to return to Venezuela.
Trump has also said Venezuelan oil could be used to replenish the U.S. Strategic Petroleum Reserve.
On August 30, Trump said the process of refilling the reserve with Venezuelan oil would begin shortly.
Strategic Petroleum Reserve Context
| Indicator | Current Situation |
|---|---|
| U.S. SPR holdings on Aug. 21 | ~290 million barrels |
| Reserve position | Near a 44-year low |
| Potential new source | Venezuelan crude |
| Main objective | Replenish strategic stocks |
| Timing of major supply impact | Uncertain |
The reserve had been depleted during recent global disruptions, including the Russia-Ukraine war and conflict involving Iran.
Venezuelan Oil Is Not An Immediate Supply Solution
Despite the enormous reserve base, the agreement is unlikely to transform U.S. oil supply immediately.
Increasing Venezuelan production requires years of investment and infrastructure work.
Reuters reported that experts believe substantial investment is necessary before the country’s output can rise significantly.
Production Timeline
2026
Deal announced
│
▼
2026-27
Investment + planning
│
▼
Infrastructure restoration
│
▼
Drilling + field development
│
▼
Production increases
│
▼
Higher exports
│
▼
Potential impact on US supply
This makes the deal a long-term energy strategy rather than an immediate solution to high gasoline prices.
Venezuelan Oil Production Has Already Started Recovering
Venezuela’s oil output has shown improvement since Maduro’s removal.
Bloomberg data cited by Moneycontrol indicated that production had increased by nearly 300,000 barrels per day since Maduro’s ouster.
However, that increase remains small relative to Venezuela’s enormous reserve base.
Venezuela’s Oil Potential
| Indicator | Figure |
|---|---|
| Proven reserves | ~300 billion barrels |
| Reserves covered by announced deal | >65 billion barrels |
| Fields covered | 17 |
| Reported production increase since Maduro’s ouster | ~300,000 barrels/day |
| Target discussed by Venezuelan government | >1.5 million barrels/day from 17 fields |
Venezuelan authorities have said the 17-field project could eventually produce more than 1.5 million barrels per day.
The Pentagon Is Also Linked To The Deal
Another unusual feature of the arrangement is the reported involvement of the U.S. Defense Department.
Bloomberg reported that the Pentagon’s Office of Strategic Capital was being considered for a role in overseeing or helping finance the oil-field licenses.
The office was created to help mobilize private capital for strategic investments.
The Pentagon has emphasized that the office cannot take ownership stakes in private companies.
Instead, its tools include loans, loan guarantees and technical assistance.
Pentagon’s Potential Role
| Area | Potential Role |
|---|---|
| Capital assistance | Loans or guarantees |
| Transaction support | Deal structuring |
| Strategic investment | Reduce project risk |
| Direct ownership | Not permitted |
| Objective | Encourage private capital |
This approach could help address one of the biggest obstacles to Venezuelan oil development: investor risk.
Alejandro Betancourt Emerges As A Key Figure
A central private-sector figure in the agreement is Venezuelan businessman Alejandro Betancourt.
His company, North American Blue Energy Partners, is expected to play a significant role in the new structure, according to reporting on the deal.
Betancourt has become an intermediary between Washington and Caracas and already controls a major private Venezuelan oil business.
His involvement has attracted scrutiny because of his previous connections to Venezuela’s political establishment.
Key Private-Sector Participant
| Entity / Person | Reported Role |
|---|---|
| Alejandro Betancourt | Venezuelan energy investor |
| North American Blue Energy Partners | Private oil company |
| US government | Majority-control interest |
| Private energy companies | Potential field operators |
| PDVSA | Venezuela’s state oil company |
The final operating and ownership arrangements remain subject to implementation.
US Oil Companies Could Return To Venezuela
The agreement could create opportunities for American energy companies to return to Venezuelan fields.
The plan could involve auctions or tenders through which private companies receive rights to develop individual fields.
Reuters reported that a list of 17 fields includes both greenfield and mature assets.
Potential US Energy-Sector Opportunities
Venezuelan oil deal
│
▼
Field licenses
│
▼
US / international energy companies
│
├── Drilling
├── Oil services
├── Engineering
├── Infrastructure
└── Refining
│
▼
Higher production
Companies involved could benefit from new access to a resource base that has been largely closed to Western investment for years.
Venezuela’s Oil Data Is Also Being Rebuilt
The oil sector faces another less visible problem: unreliable production and reservoir data.
Reuters reported that U.S. oil-services company SLB recently signed a contract with PDVSA to modernize and digitize Venezuela’s oil-field databases.
The project involves consolidating data, applying artificial intelligence and improving information used for reservoir analysis and production tracking.
Why Oil Data Matters
| Data Area | Importance |
|---|---|
| Reservoir characterization | Determines recoverable resources |
| Production history | Measures field performance |
| Geological data | Guides drilling |
| Real-time production | Tracks output |
| Infrastructure data | Supports investment planning |
| Export data | Determines commercial flows |
Better data could make it easier for international investors to evaluate Venezuelan assets.
The Agreement Has Geopolitical Implications
The proposed U.S. role in Venezuelan oil goes beyond energy economics.
It could significantly increase Washington’s influence over Venezuela’s economy and reshape the country’s relationships with China and Russia.
Chinese companies have previously operated in some of the fields involved in the discussions.
The deal therefore has implications for the wider competition for influence in Latin America.
Geopolitical Effects
| Area | Potential Impact |
|---|---|
| US-Venezuela relations | Much closer economic ties |
| China | Potentially reduced influence |
| Russia | Potentially reduced energy role |
| Latin America | Increased U.S. influence |
| Global oil markets | Potential additional supply |
| Venezuela | Greater foreign investment |
The arrangement has been linked to Trump’s broader “Donroe Doctrine,” which emphasizes expanded U.S. influence in the Western Hemisphere.
Critics Question The Deal’s Legality And Durability
The proposed arrangement has generated criticism inside Venezuela.
Opposition figures have questioned whether the interim government has the authority to make such a long-term commitment and whether future Venezuelan governments would honor it.
The reported 100-year lease proposal has been particularly controversial.
Key Legal And Political Risks
| Risk | Potential Consequence |
|---|---|
| Change in Venezuelan government | Contract could be challenged |
| Constitutional disputes | Legal uncertainty |
| Foreign ownership concerns | Political backlash |
| Security instability | Higher operating costs |
| Infrastructure damage | Delayed production |
| Investor concerns | Slower capital deployment |
| Sanctions changes | Disrupted operations |
These risks could determine whether the ambitious investment targets are actually achieved.
Oil Markets May Not See An Immediate Price Impact
The announcement could influence market expectations, but the physical supply impact is likely to take time.
Oil prices respond primarily to actual or expected changes in production, inventories and transportation.
A large reserve base does not automatically create additional barrels in the global market.
Venezuela must first restore production capacity and export infrastructure.
Reserve Vs Production
Large reserves
≠
Immediate production
Reserves
│
▼
Investment
│
▼
Infrastructure
│
▼
Drilling
│
▼
Production
│
▼
Exports
│
▼
Global supply impact
This distinction will be important as markets assess the long-term consequences of the agreement.
The Bigger Picture
What began as U.S.-Venezuela negotiations over a major stake in oil fields has rapidly evolved into one of the most consequential energy arrangements of 2026. Bloomberg initially reported on August 27 that Washington and Caracas were discussing a large stake and even a possible 100-year lease on several fields. By August 28, Trump announced that the United States had secured majority control of more than 65 billion barrels of Venezuelan proven reserves through an agreement involving private business.
The strategic appeal is clear: Venezuela controls the world’s largest proven crude reserves, while U.S. strategic oil stocks are near a multi-decade low. But transforming reserves into actual production will require enormous investment, infrastructure restoration, security spending and political stability. The agreement could attract roughly $100 billion of investment and potentially generate more than $209 billion in Venezuelan tax revenue, but analysts and industry executives caution that substantial production gains could take years.
Looking Ahead
The next stage will be implementation. Washington and Caracas will need to clarify ownership, operating rights, field-by-field development plans and the role of private energy companies. The reported 17-field portfolio contains a mixture of mature assets and undeveloped areas, meaning investment requirements and production timelines will vary considerably. The Pentagon’s potential financing role and the involvement of private investors could help reduce some risks, but legal and political uncertainty remains a major hurdle.
For the United States, the deal could eventually provide another source of heavy crude and help replenish the Strategic Petroleum Reserve. For Venezuela, it offers the prospect of billions of dollars in foreign investment and a revival of an oil industry weakened by years of underinvestment. Whether the arrangement becomes a durable transformation or faces legal, political and operational obstacles will depend on how quickly the promised capital reaches the fields and how effectively Venezuela’s damaged production infrastructure can be rebuilt.
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