Trump: Venezuelan Oil Deal to Refill US Strategic Petroleum Reserve

President Donald Trump announced on Sunday that oil from the recently secured deal with Venezuela will be used to replenish the US Strategic Petroleum Reserve (SPR). In a social media post, he described the oil as a “Gift from Venezuela to the People of the United States.”

The reserve stood at approximately 290 million barrels as of August 21, near a 44-year low. The stockpile was drawn down under both the Biden and Trump administrations to counter global supply disruptions and high fuel prices.

It remains unclear how quickly the Venezuelan oil can be supplied to the reserve, as the agreement is aimed at reviving Venezuela’s oil industry, which requires significant investment and infrastructure work before production can increase substantially.

A new report has provided further details on the US plan to gain a stake in Venezuela's oil sector, suggesting the US government is planning to take a 35% non-operational share in North American Blue Energy Partners, a company owned by Venezuelan businessman Alejandro Betancourt.

According to the report, which cited individuals familiar with the negotiations, the US also seeks preferential rights to purchase 20% of the company's output at cost. The potential investment would reportedly be structured through 'penny warrants' by the Pentagon's Office of Strategic Capital, allowing the US government to acquire equity without a major capital outlay.

However, a Pentagon spokesperson, Sean Parnell, has stated that the Office of Strategic Capital does not take equity stakes in private companies. He clarified that its role is limited to providing loans, loan guarantees, or technical assistance.

Venezuelan Interim President Delcy Rodriguez on Saturday provided further details on the energy agreement with the United States, stating it will remain in force for 25 years and aims to increase crude output to 1.5 million barrels per day (bpd).

In a televised address, Rodriguez described the accord as a "historic" deal that would help revive the nation's economy. She said the 25-year project involves the development of 17 strategic oilfields.

Rodriguez added that the agreement could generate approximately $209 billion in revenue for Venezuela and that the 1.5 million bpd target was an initial goal, with plans for further expansion including eight new greenfield oil blocks. She also stated the deal would preserve the country’s sovereignty over its natural resources.

Reports on August 29 indicated that Iran has made an allegation regarding the announced oil deal between the United States and Venezuela, though the specific nature of the claim remains unclear.