US secures 100-year control of Venezuelan oil reserves in controversial deal

On Friday, the Trump administration announced it had secured control of 65 billion barrels of Venezuelan oil—roughly one-fifth of the country's proven reserves—in a deal that will grant the United States majority control over 17 strategic oil fields for the next 100 years. President Trump called it "the biggest oil deal in world history" and claimed the arrangement would more than double American oil reserves, which stood at approximately 46 billion barrels by the end of 2024. The Strategic Petroleum Reserve, designed to hold up to 714 million barrels, had shrunk to just 289.7 million—its lowest level since 1982—making the Venezuelan reserves, in Trump's framing, essential to restoring American energy security.

The path to this agreement runs directly through January 3, 2026. For weeks, US military vessels had been positioned off Venezuela's coast. On that date, Trump authorized an operation to abduct President Nicolas Maduro, who had led the country since 2013 through a tenure marked by disputed elections and suppression of political dissent. Maduro now awaits trial in New York on drug and weapons charges. In his place, Trump backed Maduro's former vice president, Delcy Rodriguez, who was sworn in as interim president. The Trump administration simultaneously announced it would take control of Venezuela's oil exports indefinitely. When asked about Rodriguez's compliance, Trump told The Atlantic in January: "If she doesn't do what's right, she is going to pay a very big price, probably bigger than Maduro."

Rodriguez has presented the deal as a victory for her government, calling it "historic" and saying it would drive "a significant impact on our nation's revival." Her administration estimates the arrangement will generate $209 billion in taxes for Venezuela, plus $100 billion in investments. This framing addresses Venezuela's severe economic crisis—nearly 8 million people have fled the country since 2014 due to political repression and economic collapse. The government has blamed mismanagement and US sanctions for the decline, though critics point to corruption and mishandling of state industries as contributing factors.

Yet the specifics of the deal remain opaque. The Trump administration has said it will partner with a private business to extract the oil, but few concrete terms have been released. Oil market researcher Rory Johnston dismissed the 65-billion-barrel figure as "a red herring" with "little relevance to any actual deals," suggesting Trump announced a splashy number to jumpstart the economy ahead of November's midterm elections. The timing is deliberate: the announcement came six months after the US-Israel war on Iran began on February 28, when Iran closed the Strait of Hormuz to commercial traffic. Nearly one-fifth of the world's oil and natural gas supply had flowed freely through that waterway. The closure has spiked global oil prices. The American Automobile Association announced this week that August would be the most expensive month on record for gasoline, with US consumers paying an average of more than $4 per gallon. Trump has promised the Venezuelan oil will "substantially lower Gas Prices for all Americans."

The Trump administration's legal claim to Venezuelan resources rests on a historical argument: that early American fuel exploration in Venezuela created a basis for ownership, and that Venezuela's nationalization of its oil industry constituted theft of American wealth. Stephen Miller, Trump's adviser, called the nationalization "the largest recorded theft of American wealth and property." In December, Trump announced a blockade around Venezuela, accusing the country of having "stolen oil fields" from the US. International law, however, grants countries "permanent sovereignty" over their resources to protect them from unwanted foreign exploitation. Experts have denounced US intervention in Venezuela as illegal under international law.

Critics have drawn comparisons to colonial-era resource extraction. Energy analyst Gregory Brew likened the arrangement to oil concessions sought by the British Empire in the early 20th century, writing that "such a thing is without precedent." Trump himself has embraced the language of "Manifest Destiny" as part of his vision for a "growing nation" that "increases our wealth" and "expands our territory." At a Las Vegas rally this month, Trump told supporters: "We're taking a lot of oil from Venezuela, and we're getting along great with them. That's the old-fashioned way, right? To the victor belong the spoils, right?" He claimed to have "paid for the war" against Venezuela "with what we've taken out" from the country.

The Venezuela model may not remain isolated. Trump has floated the possibility of claiming oil reserves in other regions. In 2011, before his first presidential run, he suggested the US should use military power to extract oil from other countries, specifically referencing Libya and Iraq. During his current term, he has voiced similar intentions toward Iran, posting on social media in April: "With a little more time, we can easily OPEN THE HORMUZ STRAIT, TAKE THE OIL, & MAKE A FORTUNE." He has also proposed making the Strait of Hormuz a US territory. Secretary of State Marco Rubio has framed the Venezuelan deal as a demonstration of Trump's "America First" foreign policy, asserting it will secure "stable reserves and low-cost oil in our Hemisphere." What remains to be seen is whether this arrangement becomes a template for future US resource claims elsewhere in the world.