The Trump administration announced an agreement with Venezuela and a private oil company to secure majority control of 65 billion barrels of oil, about a fifth of the country's reserves. This unusual move involves the U.S. government taking a direct stake, departing from its typical hands-off approach to oil exploration. Venezuela holds over 300 billion barrels of proven reserves, the world's largest, though experts consider these figures optimistic. Production has plummeted from over three million barrels daily in the 1990s to 1.12 million barrels in July, according to the International Energy Agency, due to corruption, crumbling infrastructure at state-owned Petróleos de Venezuela (PDVSA), and U.S. sanctions.

Historically, the U.S. was Venezuela's top oil buyer until 2019 sanctions halted imports. Shipments resumed in 2023 and rose after U.S. forces captured Nicolás Maduro in January, though volumes remain low. Most Venezuelan crude now goes to China. Venezuelan heavy crude suits many U.S. refineries, but the industry has seesawed between state control and foreign investment. Hugo Chávez forced companies to reduce stakes in 2007; Chevron stayed and now produces roughly a quarter of output, while Conoco Phillips and Exxon Mobil left.

The new deal grants the U.S. a 35 percent equity stake, aiming to revive production. However, analysts warn that Venezuela's dilapidated infrastructure, corruption, and political instability make significant output increases a years-long prospect.