Trump announces 'historic' US-Venezuela oil deal that he says will lower gas prices

President Donald Trump announced Friday that the U.S. and Venezuela have reached a "historic" oil deal that he said would give the U.S. a majority control of billions of barrels of oil reserves in the Caribbean country and lower gas prices for Americans.

In a social media post, Trump called it "THE BIGGEST OIL DEAL IN WORLD HISTORY" and said it would provide majority U.S. control of more than 65 billion barrels of proven oil reserves in Venezuela.

The president claimed that the deal will serve to "substantially lower" gas prices for Americans "long into the future."

🚨 BREAKING NEWS pic.twitter.com/vkRV9oOetV

— Department of State (@StateDept) August 28, 2026

A U.S. official with knowledge of the deal told ABC News that the U.S. will have a 55% share in a joint venture with a private Venezuelan company, which will be split between equity ownership and production.

This creates the "second-largest private oil company by reserves in the world," the official added. 

The interim Venezuelan president granted the private company a 100-year lease for oil fields totaling 65 billion barrels of proven reserves, the official said. 

In a statement in English posted on social media, Rodriguez hailed the agreement with the U.S. and said it would "have a significant impact on our nation's revival."

Venezuela's acting President Delcy Rodríguez speaks during a press conference in Caracas, Venezuela, on July 2, 2026. Pedro Mattey/AP Photo

The U.S. official said the supply of at-cost oil produced from this company will help fill the U.S. Strategic Petroleum Reserve and also benefit the U.S. military.

The deal was negotiated by the Defense Department and State Department, according to the official.

Venezuela has been beset by economic crises for years and suffered two powerful back-to-back earthquakes in June that left more than 6,000 people dead.

Rodriguez thanked Trump and Secretary of State Marco Rubio and said the agreement represents a "historic milestone" in relations between the two countries.

"The agreement will allow for a significant increase in oil production with the participation of private operators," Rodriguez said in the statement, saying the deal calls for the development of 17 strategic fields, with a proven potential of 65 billion barrels of oil, and an investment of more than $100 billion, and more than $209 billion in tax revenue.

"Venezuela is thus ushering in a new era of recovery, growth, production, security, and prosperity for our people," she said in the post. 

Abandoned pumpjacks damaged over time at a field of state oil company PDVSA on Lake Maracaibo, as residents around the oil-rich center of Maracaibo in Zulia state remain uncertain about new investments following recent legislative reforms allowing greater private participation in PDVSA and aimed at revitali...

Venezuela is recognized as holding the largest proven oil reserves in the world with over 330 Billion Barrels. However, despite hold ing 17% of the world oil reserves it currently only produces 1% of the Worlds usable oil. This deal with the US will more than double that output. 

Chevron, the only U.S. oil company currently operating in Venezuela, declined to comment on the president's post.

Trump also said the deal would "greatly strengthen" the relationship between the U.S. and Venezuela.

In January, the U.S. carried out a military operation in Venezuela to capture then-President Nicolas Maduro and his wife and bring them to the U.S. to face charges including narco-terrorism and drug trafficking.

Maduro and his wife, who have pleaded not guilty, are set to go on trial in New York City, in 2027.

In a social media post, Rubio called the deal a "huge win" for both the U.S. and Venezuela.

"It demonstrates how President Trump's bold foreign policy is driving America First wins: securing stable reserves and low-cost oil in our Hemisphere and lowering gas prices here at home," Rubio said in the post. "For the Venezuelan people, this deal will bring nearly $100 billion in private investment, support thousands of high-paying jobs, and drive the reconstruction of Venezuela's economy."

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Trump’s historic oil deal with Venezuela realigns global energy and puts OPEC, Canada on notice

President Donald Trump's historic deal to secure rights to 65 billion barrels of Venezuelan oil not only doubles America's energy reserves but also puts pressure on OPEC and Canada in the race for energy supremacy.

Trump announced the deal Friday night, saying it would not cost American taxpayers any money, and experts immediately predicted the move substantially realigns global energy in the favor of the United States.

"What I think you're seeing is really, truly a long-term vision for how our country, the United States of America, wants to be the leader in the oil markets -- American energy dominance. And this means getting out of this OPEC cartel. It means trying to free the world from the the craziness in the Middle East," said Sam Romain, the chairman of Americans for Energy Dominance.

Romain said Trump's announcement also exposed the silliness of a recent threat by Canada to stop sending crude oil to the United States over a trade dispute.

"Here's how this trade works with Canada: they don't have any refining capacity. They don't have a strategic oil reserve," he said. "They pull out of the ground a very thick, heavy crude oil, and we in the United States we have a very light suite, and we have to mix that together, blend it together.

"So they send 4 million barrels per day, but what they get in return is gasoline. And so if they want to shut down the crude pipeline, fine, go ahead. But you're not going to get any gas, and so it's it's a paper tiger," he added.

Trump said the deal, which will be overseen by War Secretary Pete Hegseth and Secretary of State Marco Rubio, secures majority U.S. control of more than 65 billion barrels of oil reserves in Venezuela.

"This Historic Transaction more than doubles American Oil Reserves, greatly increases our Oil Supply, and will substantially lower Gas Prices for all Americans, long into the future, while helping to continue to set Venezuela on a course toward Tremendous Success and Great Prosperity," Trump posted on Truth Social. 

"This Transaction will greatly strengthen the already growing relationship between Venezuela and the United States," he continued. "Thank you for your attention to this groundbreaking matter."

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.