Trump says US will refill Strategic Petroleum Reserve with Venezuelan oil

Donald Trump says Venezuelan oil will soon begin rebuilding the US Strategic Petroleum Reserve, which has fallen to about 290 million barrels, its lowest level in roughly 44 years.

Trump described the planned replenishment as a “Gift from Venezuela to the People of the United States.” But the timing and practical benefit remain uncertain. The agreement announced on Friday is intended to revive Venezuela’s damaged oil industry, and increasing production will require major investment and infrastructure work.

The reserve declined under both the Biden and Trump administrations as the United States responded to global supply disruptions, including Russia’s invasion of Ukraine and the conflict with Iran. It held about 290 million barrels as of Aug. 21.

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Gift from Venezuela to the People of the United States.

Rodriguez said the energy agreement would remain in force for 25 years and would initially target more than 1.5 million barrels per day from 17 strategic oilfields. She said the deal would preserve Venezuela’s sovereignty over its natural resources and could generate about $209 billion for the Venezuelan state, based on a benchmark oil price. The broader plan also includes eight greenfield oil blocks.

Venezuela holds the world’s largest proven oil reserves but produces about 1.25 million barrels per day, well below its potential after years of underinvestment, mismanagement and sanctions.

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This 25-year bilateral project envisages the development of 17 strategic oilfields with a production target of more than 1.5 million barrels per day.