Following the announcement of a major oil agreement with Venezuela, the White House has begun clarifying the scope of the deal. Acting President of Venezuela Delcy Rodríguez has granted the company 100-year rights over 17 oil fields, which hold proven reserves totaling 65 billion barrels. According to the White House, many of these fields were previously held by Chinese or Russian firms.
The agreement, which was formally signed by Secretary of State Marco Rubio and Defense Secretary Pete Hegseth, commits the company to $100 billion in new oil infrastructure investments. The company noted that its lead, Betancourt, has over 15 years of experience in the Venezuelan oil sector and manages a workforce of more than 5,000 employees alongside 10,000 contractors.
President Trump has actively pursued increased production in Venezuela since the January military mission that resulted in the capture of former President Nicolás Maduro on charges related to narcoterrorism and drug trafficking. While Trump has argued the plan will eventually lower gas prices, he acknowledged that consumers should not expect immediate relief. During a White House briefing, Trump suggested that while it could be a little bit before prices fall, he dismissed analyst predictions that the process would take years. Describing the reserves as an "unbelievable value that was sitting dormant," Trump stated, "We're going to be taking all of that."
The deal has drawn scrutiny on Capitol Hill. Rep. Rick Crawford, the Republican chairman of the House Intelligence Committee, requested further details from the administration, while others have been more critical. "President Trump's effort to turn the U.S. military into an investor in Venezuelan oil is a blatant abuse of power and taxpayer dollars," Reed said in a statement.
These details emerged just before a scheduled meeting between Trump and leaders from the oil refining industry to discuss expanding domestic capacity. This meeting takes place as the ongoing Iran war has pushed the national average price at the pump to $4.08, representing a 28% increase over the previous year according to AAA. The White House maintains that expanding refinery capacity is essential for processing Venezuelan oil and eventually reducing consumer costs. The upcoming meeting is set to include Energy Secretary Chris Wright, Interior Secretary Doug Burgum, and Jarrod Agen, the director of the White House National Energy Dominance Council.
Betancourt's company has agreed to put up $100 billion in new oil infrastructure investments.
Lawmakers on Capitol Hill said Monday that they were looking for more information about the agreement.
