President Donald Trump announced on August 28 that the United States has entered into an agreement with Venezuela to take majority control of approximately 65 billion barrels of the country's oil reserves — a claim he described as a historic energy deal. Trump made the announcement publicly, asserting U.S. control over a substantial portion of what is considered the world's largest proven oil reserves.

The precise legal and operational framework of the deal has not been fully disclosed. It is unclear which Venezuelan authorities signed the agreement, how enforcement would work, or what compensation or concessions Venezuela received in return. Venezuela's oil sector has long been controlled by the state-owned company PDVSA, which has been subject to U.S. sanctions. The Maduro government has not publicly confirmed the terms as described by Trump.

The announcement immediately prompted political debate in Washington. Representative Ro Khanna publicly stated that the United States taking control of Venezuelan oil is "morally wrong," a position covered across the spectrum. Critics raised questions about sovereignty, international law, and whether the deal reflects a genuine contractual arrangement or a political claim ahead of broader negotiations.

Energy analysts noted that 65 billion barrels would represent an enormous strategic and economic asset if the agreement holds. Venezuela holds the largest proved oil reserves in the world, estimated at over 300 billion barrels, though production has collapsed in recent years due to mismanagement, sanctions, and infrastructure decay. Any significant revival of Venezuelan oil output would require substantial foreign investment and technical expertise.

The deal marks a significant shift in U.S.-Venezuela relations, which have been adversarial for years. The Biden administration had previously issued limited sanctions relief to encourage negotiations, while the Trump administration reimposed and expanded those restrictions. The nature and durability of this new arrangement are expected to face scrutiny from Congress and international partners.