- US President Donald Trump announced on social media that oil from a recently struck deal with Venezuela will be used to replenish the US Strategic Petroleum Reserve, an emergency oil stockpile that has been drawn down sharply in recent years.
- Trump wrote on Truth Social that the reserve had been made 'virtually' empty, blaming former President Joe Biden.
- Trump said the 'topping out' process will begin shortly, describing the Venezuelan oil as a 'Gift from Venezuela to the People of the United States'.
- Venezuela's interim President Delcy Rodriguez stated that the 'historic' deal with Washington will last 25 years and allow Venezuela to develop its oil industry while preserving ownership and sovereignty of its resources.
- The project envisages the development of 17 strategic oilfields with an initial production target of 1.5 million barrels per day, Rodriguez said.
- Under the deal, $19 from every barrel of oil produced and sold to the US will flow to Caracas, an arrangement that could be worth $209bn per year to Venezuela, depending on oil prices, Rodriguez said.
- The US reserve held about 290 million barrels as of August 21, near a 44-year low, after drawdowns under both the Biden and Trump administrations in response to global supply disruptions, including Russia's invasion of Ukraine and the current US-Israel war on Iran.
President Trump announced a significant deal to replenish the U.S. Strategic Petroleum Reserve with Venezuelan oil, which has been severely affected by sanctions. The deal, lasting 25 years, will allow Venezuela to develop its oil industry while maintaining ownership of its resources.14
Trump stated on Truth Social that the reserve is “virtually” empty, attributing the depletion to former President Joe Biden. The reserve currently holds about 290 million barrels, a 44-year low, after significant drawdowns due to global supply disruptions, including Russia’s invasion of Ukraine and the U.S.-Israel conflict with Iran.27
Venezuela’s interim President Delcy Rodriguez described the deal as “historic”, allowing the country to develop 17 strategic oilfields with an initial production target of 1.5 million barrels per day. Under the agreement, $19 from every barrel sold to the U.S. will flow to Caracas, potentially worth $209 billion per year depending on oil prices. Rodriguez emphasized that Venezuela will retain ownership of its natural resources while leveraging capital and technology to recover its oil industry.5
This deal marks a pivotal moment in U.S.-Venezuela relations, as it seeks to address both domestic energy needs and international economic pressures.
“The reserve held about 290 million barrels as of August 21, near a 44-year low, after drawdowns under both Biden and Trump administrations. Venezuela's interim President Delcy Rodriguez said the project targets 1.5 million barrels per day from 17 oilfields, potentially worth $209bn annually.”
