In a landmark geopolitical and energy move, the United States and Venezuela have signed a historic oil deal spanning 100 years and covering 17 oil fields with an estimated 65 billion barrels of proven and potential reserves.
Under the agreement, the U.S. will receive 55% of the venture's effective output and holds the right to purchase crude at cost, securing a stable, low-cost energy supply for decades. Up to $100 billion is expected to be invested in revitalizing Venezuela's struggling oil infrastructure.
Former President Donald Trump stated that Venezuelan crude will be used to refill the U.S. Strategic Petroleum Reserve (SPR), which has been significantly depleted in recent years, bolstering America's long-term energy security.
The deal marks a dramatic turnaround in bilateral relations after years of sanctions. It offers Venezuela a crucial economic lifeline to rebuild its oil sector, while providing Washington with a massive oil source to reduce reliance on other volatile regions.
Analysts suggest this move could stabilize global oil prices but may stir tensions within OPEC+, as substantial Venezuelan crude floods international markets in the coming years.