U.S. Gains Majority Stake in Venezuela's 65 Billion Barrels to Hedge Shale Decline
The United States has secured majority control of more than 65 billion barrels of proven oil reserves in Venezuela, a move intended to offset a possible future drop in domestic shale output.
The Trump administration’s agreement with Venezuela grants the United States majority ownership of over 65 billion barrels of proven reserves, supplementing the country’s existing 46 billion barrels of domestic reserves. While U.S. shale production has propelled the nation to the world’s top oil producer, shale wells decline rapidly, prompting a search for overseas sources.
Companies including BP, Shell, Repsol and Exxon are courting the opportunity, and Chevron has pledged a $7 billion, five-year expansion. Energy Secretary Chris Wright said the partnership has already boosted Venezuelan output and could eventually lead Venezuela to exit OPEC, reshaping the global energy landscape as U.S. shale wanes.
How this story developed
- Aug 28 U.S. Negotiates Long-Term Lease of Venezuelan Oil Fields to Cut Import Costs
- Aug 28 The White House has referred inquiries about the proposed deal to the Energy Department.
- Aug 29 Trump announced a partnership granting the United States a 55% effective output share in Venezuelan oil fields.
- Aug 30 The first publicly shared photographs of Nicolas Maduro since his January abduction were uploaded to his X account. The pictures show the former president detained by U.S. officials as he prepares for a trial on narco-terrorism and drug-trafficking accusations. The post was framed as a tribute to his grandchildren and supporters.
- Aug 31 Acting President Delcy Rodríguez announced a 25‑year bilateral energy project granting the United States majority control of more than 65 billion barrels of Venezuelan reserves.
- Aug 31 Trump said the deal will allow the United States to top up its Strategic Petroleum Reserve.
- Aug 31 The partnership was described as a 25‑year joint venture targeting 1.5 million barrels per day and projected to generate about $209 billion for Venezuela, with the United States holding a 55 percent interest and a 35 percent passive stake in the private partner.
- Sep 1 Pentagon’s Office of Strategic Capital joins the Venezuelan oil venture.
- Sep 2 U.S. Energy Secretary Chris Wright scheduled a visit to Venezuela to discuss the oil partnership.
- Sep 2 The administration revealed a $100 billion proposal that includes a disputed 35 % Pentagon equity stake and a 100‑year lease for the private partner.
- Sep 2 Nicolás Maduro and his wife Cilia Flores asked a Manhattan judge to throw out a drug-trafficking indictment, arguing they are immune as Venezuela’s head of state and first lady.
- Sep 3 Oral arguments on the dismissal motion are set for Nov. 17.
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