Trump says US to take control of 65bn barrels of Venezuelan oil

Donald Trump said the US would take control of 65bn barrels of Venezuelan oil under a joint venture between the two countries, according to the Financial Times. He presented the arrangement as a way to lower petrol prices for Americans, but the report provided no further details on the venture’s ownership, operating structure or implementation timetable.

The announcement comes against the backdrop of Venezuela’s substantial oil resources and the longstanding role of sanctions and political disputes in limiting how foreign companies can operate there. The new statement marks a proposed change in control and commercial access, rather than a confirmed increase in production or exports. No production target, financing plan or change to existing restrictions was specified in the material provided.

The proposal directly touches the US government, Venezuela and the countries’ joint venture. For the US, the stated mechanism is increased access to Venezuelan oil intended to reduce petrol prices. For Venezuela, the arrangement would place its oil resources within a venture involving the US. The reporting does not identify the companies involved, the division of revenue, the expected costs or how crude would move from reserves to the US market.

The central uncertainty is whether the announcement represents an agreed policy with an executable structure or a political declaration awaiting negotiations. The 65bn-barrel figure refers to the oil under discussion, not to new near-term supply, and the report did not establish how much could be produced or when. The claim that petrol prices will fall is also untested; no forecast, market reaction or independent assessment was included.

The next facts that would settle the proposal are the formal terms of the joint venture, any US or Venezuelan legal and sanctions changes, and a timetable for production and exports. A named operating partner, a production target and an announced start date would distinguish a supply plan from a headline commitment. The effect on petrol prices would ultimately depend on actual incremental barrels reaching the market, rather than the size of the reserves alone.