WASHINGTON/CARACAS — The Trump administration is reportedly moving toward a potentially far-reaching agreement with Venezuela that could give the United States an ownership stake in some of the South American country’s major oil fields, a development that could dramatically reshape Venezuela’s energy industry and Washington’s influence over its oil resources.
According to a report by Axios cited by Reuters and Channel NewsAsia, U.S. officials are discussing a deal with Venezuela’s interim government involving more than a dozen oil fields. The proposed arrangement could allow American energy companies to develop the fields while revenues from the oil would flow to the Venezuelan government.
But there is an important caveat: the agreement has not been finalized. Reuters reported that it has not independently verified the Axios report, while the White House has not publicly confirmed the reported ownership arrangement.
A potentially massive oil deal
The negotiations reportedly involve 17 oil fields containing roughly 90 billion barrels of proven reserves, according to Axios and the Wall Street Journal. That figure represents a substantial portion of Venezuela’s enormous petroleum resource base and would amount to nearly twice the size of U.S. proven crude reserves if counted on a comparable basis.
The fields reportedly include assets in the Orinoco Belt and Lake Maracaibo, two of Venezuela’s most important oil-producing regions.
Under the reported framework, U.S. companies could receive greater access to the fields and potentially take part in rebuilding and expanding production. The arrangement could give Washington a long-term role in Venezuela’s petroleum sector rather than simply facilitating individual oil exports.
That would represent a major escalation from the administration’s earlier efforts to reopen Venezuela’s oil industry to American producers.
Why Venezuela’s oil matters so much
Venezuela possesses the world’s largest proven crude oil reserves, but its petroleum industry has suffered years of declining production, inadequate investment, infrastructure deterioration, sanctions and political turmoil.
The Trump administration has repeatedly argued that rebuilding Venezuela’s oil sector could benefit both countries by bringing production back online and generating revenue for Venezuela.
Earlier this year, U.S. officials said Washington wanted greater control over Venezuelan oil sales and revenues as part of efforts to stabilize the country’s economy and rebuild its energy infrastructure.
The administration has also sought greater involvement from U.S. oil companies. Reuters previously reported that American energy companies were being encouraged to consider investing in Venezuela, although industry executives warned that restoring production would require enormous investment and involve substantial legal, security and commercial risks.
From sanctions to direct oil involvement
The reported negotiations mark another step in a dramatic transformation of U.S.-Venezuela relations.
After Washington’s intervention in Venezuela earlier this year and the removal of Nicolás Maduro, the Trump administration moved to exert greater influence over the country’s oil sector. The United States has since pursued arrangements to get Venezuelan crude flowing again while attempting to direct oil revenues toward stabilizing Venezuela’s economy.
Reuters reported in January that Washington wanted to maintain control over Venezuelan oil sales and revenues for an extended period, arguing that doing so would help rebuild the country’s devastated petroleum industry and protect U.S. interests.
The latest proposal would potentially go further by giving U.S. interests a direct economic position in individual oil fields.
What could happen to U.S. oil supplies?
The proposed arrangement comes as the Trump administration faces intense pressure over energy prices and global supply disruptions.
Reuters reported this week that Brent crude had climbed to around US$89.70 a barrel, while U.S. West Texas Intermediate reached about US$83.53, amid continuing uncertainty surrounding the Middle East and oil supplies.
Greater Venezuelan production could eventually provide an additional source of heavy crude for U.S. refineries and help diversify American supplies.
But that outcome would not happen overnight.
Venezuela’s oil infrastructure requires extensive rehabilitation, and production has been constrained for years. Reuters previously reported that major oil companies have viewed the opportunity with caution because rebuilding the sector would require significant capital, improved security and clearer legal protections.
A legal and political minefield
The biggest question may not be how much oil Venezuela can produce—but who has the legal authority to control it.
The Wall Street Journal reported that the proposed arrangement has already raised concerns among Venezuelan opposition figures and legal experts, particularly over whether the interim government has the constitutional authority to negotiate long-term control or ownership arrangements involving the country’s oil resources.
Venezuela’s petroleum industry has historically been closely tied to the state, making any substantial transfer of control to foreign interests politically explosive.
For Washington, the challenge will be balancing its desire for energy security and investment opportunities with questions surrounding Venezuelan sovereignty, ownership and the legitimacy of the country’s transitional authorities.
China is another major factor
The proposed U.S. involvement also has a geopolitical dimension.
China has maintained extensive economic ties with Venezuela and has been a major creditor and commercial partner. Any significant expansion of U.S. control or influence over Venezuelan oil could therefore affect Beijing’s longstanding position in the country’s energy sector.
That makes Venezuela more than an oil story. It is increasingly becoming part of a broader contest over energy, influence and strategic power in the Western Hemisphere.
No final deal yet
Despite the potentially enormous implications, the reported agreement remains under negotiation.
Reuters said the White House has not commented on the Axios report and that the news agency could not independently verify the details. The exact structure of any possible U.S. participation—including whether it would involve direct ownership, joint ventures, leases or other arrangements—has yet to be settled.
That distinction is critical.
For now, the story is not that the United States has officially taken ownership of Venezuelan oil fields. Rather, Washington and Caracas are reportedly negotiating a framework that could give U.S. interests an unprecedented role in some of Venezuela’s most valuable petroleum assets.
If the agreement is completed, it could become one of the most consequential energy deals of the Trump era—potentially reshaping Venezuela’s oil industry, strengthening U.S. influence over a critical Western Hemisphere resource and adding another major front to the global struggle over energy security.
And the biggest question may still be unanswered:
Will Venezuela’s vast oil wealth ultimately become the foundation of its economic recovery—or the center of a new geopolitical power struggle?
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