Trump says Venezuelan oil will refill US strategic reserve

President Donald Trump announced Sunday that the United States will use oil from its newly struck deal with Venezuela to replenish the nation's depleted Strategic Petroleum Reserve, calling it a "Gift from Venezuela to the People of the United States."energyconnects+1

"One of the things I am going to do with the Venezuelan Oil is fill up the Strategic National Reserves," Trump wrote in a Truth Social post, blaming his predecessor Joe Biden for emptying the reserve and saying the "topping out" process would begin "very shortly."energyconnects

The announcement follows Trump's Friday declaration of what he called "the biggest oil deal in world history," under which the U.S. secured majority control of more than 65 billion barrels of Venezuela's proven oil reserves through a partnership with an unnamed private operator.reuters+1

The Deal's Structure

Under the agreement, interim Venezuelan President Delcy Rodríguez granted a U.S.-led joint venture 100-year concessions over 17 oil fields, according to a U.S. official familiar with the deal's terms. The U.S. government will effectively control 55% of the venture's output through a combination of equity ownership and rights to purchase oil at cost. The resulting company would become the world's second-largest private holder of proven reserves after Saudi Aramco.cbsnews+2

On Saturday, Rodríguez said in a televised address that the energy agreement would remain in force for 25 years and targets an increase in crude output to 1.5 million barrels per day. She estimated the deal could generate roughly $209 billion in revenue for Venezuela's budget at an oil price of $65 per barrel, with about $19 from every barrel going directly to the country.news.cgtn+3

Political Backlash

The agreement has drawn criticism from across Venezuela's political spectrum. Opposition leader María Corina Machado was not involved in negotiations, and allies of the opposition have condemned the deal as an abdication of sovereignty, according to Bloomberg. Supporters of Chavismo, the movement founded by the late Hugo Chávez around state control of oil, have also questioned the deal's legality.investing+2

Risa Grais-Targow, Latin America director at Eurasia Group, said the arrangement could reduce Washington's incentive to push for swift Venezuelan elections — "precisely why the opposition is so upset."scmp+1

Road Ahead for the SPR

The reserve currently holds roughly 290 million barrels, near a multi-decade low after drawdowns under both the Biden and Trump administrations. Energy economists caution that it could take years before meaningful volumes flow from Venezuela, given the country's degraded infrastructure and the capital investment required to raise production. Venezuela currently produces around 1 million to 1.25 million barrels per day, roughly 1% of global supply.facebook+2