New Delhi: US President Donald Trump has announced what he called the “biggest oil deal in world history” with Venezuela, giving the United States control over a major share of the country's oil reserves estimated at 65 billion barrels.
The landmark agreement comes months after a dramatic political shift in Venezuela, including the US operation that removed former President Nicolás Maduro from power. The Trump administration's actions in Venezuela have since focused heavily on restructuring the country's oil sector and bringing American investment back into its energy industry.
Maduro's Removal Changed Venezuela's Political Equation
The US operation against Maduro marked a turning point in Washington-Caracas relations. After Maduro was taken into US custody, the Trump administration pushed for a transition in Venezuela's political and economic system, with oil emerging as a central issue.
Venezuela sits on the world's largest proven crude oil reserves, but years of economic crisis, sanctions and declining infrastructure severely damaged its production capacity. Trump argued that US involvement could revive the industry while increasing American energy security.
Trump's Pressure Campaign Targeted Venezuela's Oil Industry
Before the oil agreement, the Trump administration increased pressure on Venezuela through sanctions measures, diplomatic moves and efforts to bring the country's energy assets under a new framework.
Trump repeatedly highlighted Venezuela's huge oil reserves and pushed for greater participation of American companies in rebuilding production. The administration argued that the plan would bring investment, create jobs and increase global oil supply.
The $65 Billion Barrel Oil Deal
Under the announced agreement, the US would gain majority control over oil fields containing around 65 billion barrels of reserves through a partnership involving American interests and Venezuelan authorities.
Trump said the deal would more than double US oil reserves, strengthen energy security and help lower fuel prices for Americans