US Close to Ownership Stake Deal in Venezuelan Oil Fields That Would More Than Double American Reserves

The Trump administration is in advanced talks with Venezuela's interim government to acquire an ownership stake in the country's vast oil fields, a deal described by one U.S. official as 'massive,' according to reports from Axios and Bloomberg on August 27. Venezuela holds the world's largest proven oil reserves, and the deal would more than double U.S. oil reserves if completed. Negotiations have been led by Secretary of State Marco Rubio and Venezuela's acting president Delcy Rodriguez, with Deputy White House Chief of Staff Stephen Miller also playing a major role.

Top officials from the State and Defense departments traveled to Caracas last month to work through specifics. The Trump administration has been laying groundwork for U.S. control over Venezuelan energy assets since it authorized the January 3 capture of former strongman Nicolas Maduro, who faces narco-terrorism charges in New York. U.S. officials say urgency to close the deal has been heightened by supply disruptions from wars in Iran and Ukraine, which have pushed global oil prices higher and drawn down the U.S.

Strategic Petroleum Reserve. Venezuela produces roughly 1 million barrels per day, less than half its pre-Chavez output, after decades of socialist mismanagement left its oil sector in disrepair.