Washington, Sep 2026 : The United States is seeking to establish what Vice-President J.D. Vance described as an effective 65-billion-barrel oil reserve through a new arrangement with Venezuela, under which American companies are expected to help develop production while US taxpayers would receive a share of royalties.
Vance presented the agreement as a measure aimed at increasing global oil supplies, reducing energy costs for American consumers and strengthening US energy security amid disruptions in international markets caused by Iranian attacks on commercial shipping.
“We're using, of course, that successful Venezuela operation and some of the friendships and some of the relationships that have developed in the wake of that operation, to create what is effectively a new 65 billion barrel of oil reserve for the United States of America,” Vance said during a White House press briefing.
He said private American companies would enter Venezuela and contribute to expanding oil production, generating significant revenues while increasing supplies to international markets.
“Obviously, that's going to mean world oil markets get only more supply that will lower costs for Americans,” Vance said, adding that the arrangement would also generate substantial revenue for Venezuela.
The Vice-President said the agreement was negotiated by Secretary of State Marco Rubio, Defence Secretary Pete Hegseth and other officials in the administration. He said the deal would allow American taxpayers to benefit directly through a portion of the royalties generated from oil production.
“Thanks to the deal struck by Marco and Pete Hegseth and others in the administration, it actually sets us up to where the American people will directly receive some of the royalties as well,” Vance said.
He described the arrangement as beneficial to Venezuela, US consumers and taxpayers, calling it a “win-win” agreement. According to Vance, the initiative could also contribute to greater stability in global energy markets by ensuring access to dependable supplies of oil and other strategic resources.
Vance said recent developments had highlighted the importance of securing reliable supplies of oil, gas and critical minerals. He linked the proposed arrangement to broader US efforts to strengthen energy security and reduce vulnerability to disruptions in international supply chains.
The Vice-President also criticised the Biden administration over its management of the US Strategic Petroleum Reserve. He alleged that oil had been released to reduce petrol prices ahead of the mid-term elections rather than in response to an international emergency.
“And what that meant is for Americans, our Strategic Petroleum Reserve under the administration got extraordinarily low,” Vance said.
Venezuela holds some of the world’s largest proven crude oil reserves. However, its oil industry has faced years of underinvestment, deteriorating infrastructure, political instability and US sanctions, factors that have constrained production.
The proposed arrangement would therefore depend on rebuilding Venezuela’s production capacity while increasing the flow of crude into global markets. The US administration has framed the initiative as part of a broader strategy to expand energy supplies, support Venezuela’s economy and provide financial returns to American taxpayers.
(Disclaimer :The content of this article is sourced from a news agency and has not been edited by the Mavericknews30 team.)
