The New Oil Plan
President Donald Trump announced that oil from Venezuela will refill the U.S. Strategic Petroleum Reserve. This move follows a deal secured Friday to control vast oil reserves in the South American nation. The president stated the reserves were “virtually emptied” during the previous administration. The new supply was termed a “Gift from Venezuela to the People of the United States” by him.
The Washington Examiner reports that the agreement places over 65 billion barrels of proven oil under U.S. control. Trump said this historic transaction will “substantially lower Gas Prices for all Americans.” The reserve levels recently hit a 40-year low after significant releases over the last few years. The Department of Energy noted a drop of 6.1 million barrels in August alone.
Deal Terms and Control
Secretary of State Marco Rubio and Secretary of War Pete Hegseth helped secure the agreement. They worked with Delcy Rodriguez, Venezuela’s interim president, to finalize the terms. Per the Washington Times, the deal includes a production target of more than 1.5 million barrels per day. This agreement is set to remain active for 25 years to ensure long-term stability.
The U.S. government will retain 55 percent control of the joint venture. A U.S. official told CBS News that an experienced private operator will manage the rest. This arrangement came after U.S. forces captured former Venezuelan leader Nicolas Maduro in January. Maduro now faces narcoterrorism charges in the United States for his past actions.
Impact on Gas Prices
Gas prices have risen sharply under Trump’s second term. Trump blamed the previous president for draining the reserve to ease high energy prices during the Ukraine conflict. He ordered the release of 172 million barrels in March to combat soaring costs.
The current deal aims to reverse that trend by adding massive new supply to the market. Trump described the arrangement in all-capital letters as “The biggest oil deal in world history!” The goal is to stabilize prices long before the midterm elections in November. This shift could change the economic landscape for families struggling with fuel costs.
