Venezuela's Leader Defends Deal Reportedly Giving US Control of 65 Billion Barrels of Oil

The Quick Take

• Venezuela's interim president Rodríguez defends oil deal reportedly giving US control over 65 billion barrels
• The deal has provoked significant domestic outrage in Venezuela over energy sovereignty concerns
• A confirmed US-Venezuela oil arrangement of this scale would reshape global crude supply dynamics

Venezuela's Delcy Rodríguez, serving as interim president, publicly defended a reported oil arrangement with the United States that would give Washington control over 65 billion barrels of Venezuelan petroleum reserves — one of the largest proven oil reserve transfers in modern history if confirmed. The deal has sparked domestic political controversy in Venezuela, where oil sovereignty is a foundational element of the Bolivarian revolution ideology. The reported arrangement represents a potential geopolitical realignment between Caracas and Washington, which would unwind years of US sanctions imposed on Venezuela's state oil company PDVSA.

If confirmed and implemented, a deal giving the US control over 65 billion barrels of Venezuelan reserves — OPEC's largest proven reserves base — would materially alter global oil market supply projections and OPEC+ balance calculations. PDVSA's production has collapsed from over 3 million barrels per day in the early 2000s to under 800,000 bpd under sanctions and mismanagement; a US-led investment program could substantially raise output over a multi-year horizon, putting downward pressure on Brent crude prices. US energy companies with existing Latin American operations — Exxon and Chevron — are positioned as likely participants.

Investors should treat this story with caution until further verification: the 65-billion-barrel figure and 'US control' framing have not been officially confirmed by either Washington or Caracas. Key signals to watch include US State Department official statements, any sanctions modification from the Office of Foreign Assets Control (OFAC), and Chevron's Venezuelan operating license status — Chevron currently holds the primary US exemption for Venezuelan oil operations. The macro variable: the political durability of Rodríguez's interim government, which faces domestic opposition to any deal perceived as surrendering Venezuelan sovereignty over its energy resources.

Synthesized from 1 source.