President Donald Trump announced on Truth Social on Friday that his government had “secured majority US control” of Venezuelan oil reserves containing 65 billion barrels of oil.
The announcement followed on reporting from Axios that a deal was in the works, prompting criticisms that such a move would be “colonial” and calls for Congress to reject any such proposal.
“Let’s be clear: This isn’t a win,” Sen. Chris Van Hollen (D-Md.) wrote on social media in response to the announcement. “This is proof Trump put our service members at risk to get Venezuelan oil for his billionaire buddies. Putting our soldiers’ lives on the line for private profit is a gross dereliction of his constitutional duty.”
When US forces invaded Caracas and kidnapped Venezuelan President Nicolás Maduro and his wife First Combatant Cilia Fores on January 3, Trump’s own words following the invasion confirmed suspicions that he acted largely to gain access to the country’s oil.
“These are some of the largest crimes of our lifetimes.”
“We’re going to get the oil flowing the way it should be,” he said in a press conference following the attack.
Friday’s deal, which seems like an attempt to make good on that promise, was also announced by Secretary of State Marco Rubio and acting Venezuelan President Delcy Rodriguez, who provided more details.
According to Venezuelanalysis:
Rodríguez stated that the deal will involve private corporations developing 17 “strategic fields” with 65 billion barrels of proven reserves. She echoed Rubio’s $100 billion investment claim and pledged that the projects would yield $209 billion in tax revenues. According to the acting president, the announced agreement “ushers in a new era of growth and prosperity.”
However, economist Francisco Rodríguez, a senior research fellow at the Center for Economic and Policy Research, argued that the agreement was actually a bad deal for Venezuelans.
“President: According to your figures, this agreement will generate tax revenues of just $3.22 per barrel of Venezuelan oil. This represents 4.7% of the current price, and less than half of the royalty rate contemplated in concessions granted by Juan Vicente Gómez,” he wrote on social media, addressing the current Venezuelan leader and referring to a Venezuelan dictator from the early 20th century.
Joseph Bouchard, a journalist and researcher who focuses on Latin America, agreed with Rodriguez’s criticism of the deal, writing on social media that “Trump [was] ‘generously’ buying billions of barrels of Venezuelan oil at less than 5% its market price. He’s stealing their oil for his own family and cronies’ profit. Guessing this may be used as a chip to manipulate the midterms. These are some of the largest crimes of our lifetimes.”
Francisco Rodriguez had earlier pointed out that the deal violated the Venezuelan Constitution, which holds that all minerals and hydrocarbons are “inalienable public domain," according to Venezuelanalysis. For the deal to go through, therefore, Venezula would have to alter its Constitution.
Former head of Human Rights Watch Kenneth Roth noted on social media that “senior Venezuelan officials, all fearing arrest, are hardly in a position to negotiate vigorously, making the whole thing seems like one big military theft.”
On the plus side, no one has to argue whether the United States is imperialist anymore. https://t.co/nsb87JUARw
— Dean Baker (@DeanBaker13) August 29, 2026
Trump is under pressure to lower gas prices that have spiked due to the fallout of his war on Iran, which entered its sixth month on Friday, and promised in his announcement, “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.”
However, The Associated Press pointed out: “A significant drop in US gas prices tied to the agreement should not be expected immediately. Experts have repeatedly warned that a substantial boost in Venezuelan oil production will not happen quickly as repairing and expanding infrastructure takes years and requires billions of dollars.”
Exploiting Venezuela’s oil reserves would also exacerbate the climate crisis, which just this summer intensified a deadly heatwave in Europe and is supercharging an El Niño that could contribute to a significant increase in food prices in 2026 and 2027.
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It’s always about oil. The Great War, WW I was about oil, just never really connected in history books. Oil means control of power. The Carboniferous period was a bad idea. So was agriculture.