Deal seen as key win for 'Monroe Doctrine' energy push; domestic opposition in Venezuela poses hurdle

Drivers pass in front of the El Palito refinery on the outskirts of Puerto Cabello, Venezuela, on Dec. 18 last year (local time). [Getty Images]
Drivers pass in front of the El Palito refinery on the outskirts of Puerto Cabello, Venezuela, on Dec. 18 last year (local time). [Getty Images]

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The Donald Trump administration is pursuing a major deal with Venezuela to secure stakes in the country's vast oil fields, Axios reported Thursday (local time), citing senior US government officials. Venezuela holds the world's largest proven oil reserves.

If the deal goes through, US oil reserves would more than double, according to the report. A US government official told Axios the agreement was too big to be called merely "huge," describing it as "massive."

The negotiations are taking place amid disruptions to the global oil supply chain caused by Iran and the prolonged war in Ukraine, which have sent international crude prices surging. US strategic petroleum reserves have fallen to their lowest level in 40 years.

The talks center on more than 10 of Venezuela's most productive oil fields, chosen from the country's total reserves of 300 billion barrels. Those fields were previously controlled by allies of former governments or by Chinese capital.

In exchange for transferring stakes in the fields to the United States, Venezuela would be able to attract investment from US and other private oil companies. Reviving development of the long-neglected fields is expected to significantly boost Venezuela's oil revenue.

Axios said the deal would mark a major achievement for President Donald Trump, who has pursued what he calls the Monroe Doctrine, emphasizing energy dominance and security in the Western Hemisphere.

Trump had been discussing the acquisition of Venezuelan oil field stakes even before the arrest of then-President Nicolas Maduro in January, sources said.

The negotiations are being led by Secretary of State Marco Rubio and Venezuelan acting President Delcy Rodriguez, with White House Deputy Chief of Staff Stephen Miller also playing a central role. Working-level officials from the two countries already met in Caracas last month to discuss the details.

However, domestic criticism within Venezuela — that the Rodriguez government is selling off the country's natural resources at a bargain price — could complicate the talks. A US official said the administration was "making efforts on multiple fronts to show how much this deal benefits the Venezuelan people."

No final timeline for the deal has been set. Axios said Energy Secretary Chris Wright is considering visiting Venezuela next week to discuss ways to boost crude production by US companies.


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