Venezuela’s ruling United Socialist Party of Venezuela (PSUV) has publicly supported a comprehensive oil agreement with Washington. The PSUV stated that the deal could help Venezuela overcome the effects of over a decade of US sanctions and economic restrictions, supporting economic recovery, public services, jobs, and income for workers. The party also emphasized that Venezuela's significant hydrocarbon reserves should be used for national development and within the country's constitutional framework, with the agreement aiming to develop 17 oil fields and potentially attract $100 billion in investment and yield over $209 billion in taxes for Caracas.
Conversely, US Democrats have sharply criticized the agreement, which President Trump described as the "biggest oil deal in world history," claiming it would secure majority control of more than 65 billion barrels of Venezuela's proven oil reserves for the US. Senator Chris Van Hollen argued that Trump was endangering US service members to secure Venezuelan oil for his "billionaire buddies." Senator Tim Kaine accused Trump of using the ouster of President Nicolas Maduro to "control Venezuelan oil" and enrich his family and "Big Oil companies," calling the deal "corruption at epic scale."
Despite the Democratic criticism, Republican Senator Bernie Moreno defended the deal, stating that Democrats would have allowed Maduro to remain in power and Venezuelan oil to flow to China. Moreno suggested the deal benefits both countries for generations. Trump asserted that the agreement would more than double US oil reserves, increase supply, and substantially lower gas prices for Americans. Venezuelan acting President Delcy Rodriguez called the agreement a "historic milestone" that would contribute to the recovery and modernization of Venezuela's industry, economic growth, and hemispheric energy security.
The deal reportedly grants a private joint venture a 100-year concession to operate oil fields containing approximately 65 billion barrels, with the US controlling 55% of the venture through equity and access to oil at cost. These American purchases are intended for the US strategic oil reserves and military. Analysts, however, have expressed a need for more details on the legal and financial structure of the agreement before assessing its potential to attract significant investment, noting that the infrastructure for heavy crude could take years to develop, and the immediate impact on gasoline prices is uncertain.
