President Donald Trump announced a historic agreement between the United States and Venezuela on Friday. Under the terms of the deal, the United States will take majority control of more than 65 billion barrels of Venezuela's proven oil reserves. Venezuela confirmed the agreement shortly after the announcement.
The push aims to allow American companies to revive the OPEC nation's battered energy industry while securing a new source of crude to help bring down US fuel prices. President Trump stated that the administration will use its newfound control over these reserves to refill the nation's depleted emergency reserve and gain access to untapped oil reserves at cost. This move represents the president's latest effort to establish U.S. dominance over the Western Hemisphere.
The agreement involves a partnership with private business, and the administration will work with a private Venezuelan oil company that has close ties to the country's government. While the deal secures a significant stake in Venezuelan oil, it remains unclear how quickly the arrangement will provide oil for the reserve or deliver any near-term benefit to U.S. motorists.