The White House, under President Donald Trump, called it “the largest oil deal in history”: the United States has reached an agreement with Venezuela to gain control over more than 65 billion barrels of the country’s crude reserves.
According to a fact sheet released by the White House on Monday, this agreement—despite criticism from Venezuela’s hardliners and opposition—will ensure a steady supply of low-cost crude to the U.S. The deal was signed by Secretary of State Marco Rubio and Defense Secretary Pete Hegseth.
A press release stated that, supported by expected surges in Venezuelan oil production, U.S. crude supplies will increase, with the additional oil used to replenish strategic petroleum reserves. This move is also expected to boost business for American refineries and oilfield equipment manufacturers.
“The agreement ensures our energy dominance for the next hundred years—and at no cost to the American taxpayer,” the White House said. It added that the deal would establish a “strong, strategically significant, and defendable supply chain” across the hemisphere, effectively pushing rival companies out of the market.
Venezuela’s crude exports rebounded in August. According to shipping reports, data from Kpler Ltd., and vessel tracking by Bloomberg, oil tankers loaded 1.114 million barrels per day in August—a 28% increase from the previous month—with flows to India more than doubling.
Venezuela’s oil exports reversed their five-month low in July, as Indian refiners reduced purchases from major supplier Russia following disruptions caused by Ukrainian attacks, thereby increasing demand. Prior to that, a brief pause in Iran-related conflicts had released stranded oil in the Middle East, halving India’s oil imports in July.
