President Donald Trump said Friday that the United States has reached an agreement with Venezuela giving American interests majority control of more than 65 billion barrels of the South American country's proven oil reserves, a sweeping expansion of U.S. involvement in Venezuela's battered energy industry.

Trump described the agreement as the "biggest oil deal in world history" and said it would more than double U.S. oil reserves while increasing supplies and lowering gasoline prices for American consumers.

The announcement came as the Trump administration seeks to revive Venezuela's struggling oil sector, secure more crude for U.S. refineries and ease pressure from elevated gasoline prices. The United States is also looking for ways to replenish its Strategic Petroleum Reserve.

Trump said the agreement was negotiated by Secretary of State Marco Rubio and Defense Secretary Pete Hegseth in cooperation with Venezuelan interim President Delcy Rodriguez and private companies.

"At my direction, Secretary of State Marco Rubio, and Secretary of War Pete Hegseth, working closely with Highly Respected Interim President of Venezuela, Delcy Rodriguez, and, through a partnership with private business, have secured majority U.S. control of more than 65 BILLION BARRELS of proven Oil Reserves in Venezuela, at no cost to the American Taxpayer," Trump wrote on Truth Social.

The 65 billion barrels represent roughly one-fifth of Venezuela's proven reserves, which are the largest in the world. Venezuela, however, produces only about 1.25 million barrels of crude a day, a fraction of its potential after years of underinvestment, mismanagement and sanctions.

Deal details remain unclear

Trump did not provide details about the fields covered by the agreement, the companies involved or the legal structure that would allow the United States to exercise majority control over the reserves.

Reuters reported that Venezuelan officials were preparing agreements that would grant new exploration and production rights to several companies, particularly U.S. firms. A list reviewed by Reuters identified fields in the Orinoco Belt and Lake Maracaibo regions.

The structure of the arrangement could prove critical because Venezuela's constitution and hydrocarbons laws have traditionally reserved a central role for the state in the oil industry.

Analysts have also questioned how quickly the agreement could translate into higher production. Much of Venezuela's crude is heavy oil that requires specialized technology and substantial investment to extract, transport and refine. Years of deterioration have left the country's energy infrastructure, power grid and export capacity in poor condition.

David Goldwyn, president of Goldwyn Global Strategies, said the legal basis for a U.S. government lease to operate Venezuelan oil fields was unclear and noted there was no established precedent for such an arrangement.

He also questioned whether the agreement would overcome the political, infrastructure and regulatory problems that have discouraged major investment in Venezuela's oil industry.

The United States could therefore face a long wait before additional Venezuelan crude reaches American consumers. Even if investment begins quickly, rebuilding production capacity and infrastructure could take years.

Venezuela expects major investment

Rodriguez welcomed the agreement, saying it would help revive Venezuela's oil industry and generate significant revenue for the government.

She said the plan would support development of 17 strategic fields and could generate about $209 billion in tax revenue for Venezuela. U.S. and Venezuelan officials also said the agreement could attract nearly $100 billion in private investment.

Rubio called the agreement a "win-win" for both countries, saying it would provide the United States with a stable source of lower-cost crude while helping Venezuela attract investment, create jobs and rebuild its economy.

The arrangement marks a major shift in U.S. policy toward Venezuela's oil sector.

Venezuela nationalized its oil industry decades ago, placing state-owned PDVSA at the center of production. Under former President Hugo Chavez, Caracas tightened its control over the sector and forced foreign companies into state-led joint ventures before later expropriating some assets.

Those policies contributed to years of disputes with major U.S. oil companies, including ExxonMobil and ConocoPhillips.

Venezuela's oil production subsequently deteriorated sharply under the government of Nicolas Maduro, amid economic collapse, mismanagement, sanctions and a lack of investment.

Gas prices create political pressure

Trump's announcement also comes as his administration faces pressure over gasoline prices ahead of November's midterm elections.

The administration has argued that increased access to Venezuelan crude could eventually boost supplies and help lower prices at the pump. Trump has repeatedly linked the Venezuela agreement to his promise to reduce energy costs for Americans.

But analysts caution that the impact is unlikely to be immediate.

Venezuela's enormous reserves do not automatically translate into readily available crude. Production would have to be expanded, damaged infrastructure repaired and transportation and refining capacity improved before significant additional supplies could reach the U.S. market.

The administration is also seeking ways to replenish the Strategic Petroleum Reserve, the nation's emergency crude stockpile, including possible oil swaps involving U.S. producers.

The agreement therefore gives Washington a potentially significant new foothold in Venezuela's energy sector, but its economic impact will depend heavily on how the arrangement is structured, whether it survives legal challenges and how quickly investment can restore Venezuela's production capacity.