Trump’s $209 Billion Venezuela Oil Deal Draws Fire From Both US Parties — and From the Venezuelans It Was Supposed to Help
President Donald Trump announced Friday that his administration has struck a deal giving the United States a majority stake in a new venture to develop 17 Venezuelan oil fields holding roughly 65 billion barrels of crude, negotiated by Secretary of State Marco Rubio, Defense Secretary Pete Hegseth and Venezuela’s acting president, Delcy Rodríguez [1]. Under the terms, the US receives 55% effective output of the new private company, including an ownership stake and rights to buy oil at cost, in an agreement administration officials say could draw $100 billion in investment and generate more than $209 billion in tax revenue for Caracas [1]. The deal follows the US military’s January 2026 operation to capture then-President Nicolás Maduro on narcoterrorism and drug trafficking charges, after which Rodríguez has served as Venezuela’s acting president through the transition [1]. The agreement drew immediate, sharply divided reactions Saturday from both major US parties and from across Venezuela’s own political spectrum [2, 3].
Why It Sucks:
US Democrats
- Troops risked for corporate oil access, Democrats say. Sen. Chris Van Hollen wrote that “this isn’t a win,” calling the arrangement “proof Trump put our service members at risk to get Venezuelan oil for his billionaire buddies” [2].
- A military operation now looks like a resource grab. Democrats argue that framing January’s capture of Maduro as a narcotics enforcement action loses credibility once it’s followed eight months later by the US claiming majority control of the country’s oil output [1, 2].
- An unelected government just signed away the nation’s biggest asset. Critics in Washington note the deal was struck with an acting president who was never elected, raising questions about whether it will hold up once Venezuela has a legitimate government [2].
US Republicans
- A hemispheric win against adversarial oil suppliers. Rubio called the deal “a huge win for both the American and Venezuelan people,” arguing it secures “stable reserves and low-cost oil in our Hemisphere” and validates Trump’s “bold foreign policy” [1].
- The investment number justifies the intervention. Republicans point to the projected $100 billion in investment and $209 billion in Venezuelan tax revenue as evidence the operation produced real economic returns, not just a change in leadership [1].
- Locking in access before rivals do. Supporters argue that securing a majority stake in 65 billion barrels now keeps the reserves out of the hands of geopolitical competitors who would otherwise move in during Venezuela’s transition [1].
Venezuelan Opposition and Citizens
- Legitimacy questions haunt the deal from day one. Harvard economist and former Venezuelan official Ricardo Hausmann said “an illegitimate interim government with an illegitimate hydrocarbons law has no legitimacy to strike this unconstitutional deal” [3].
- Hardliners and moderates in Venezuela agree on one thing: this is a bad deal. Opposition figures across the political spectrum criticized acting President Delcy Rodríguez for granting the US exclusive access to the country’s most valuable resource without a legitimate mandate to do so [3].
- The country’s oil wealth is being negotiated over Venezuelans’ heads. Even opposition leaders who previously called for foreign investment in the oil sector say a 55% US stake negotiated during a military-installed transition is a far cry from the sovereign, transparent privatization they had envisioned [3].
Sources & Citations:
[1] NPR: Trump says U.S. has entered deal with Venezuela to take control of 65 billion barrels of oil reserves
[2] The Hill: Democrats sound alarm on US-Venezuela oil deal: ‘This isn’t a win’
[3] Bloomberg: Trump’s Oil Deal Riles Both Sides of Venezuelan Politics