Trump to replenish US oil reserves with Venezuelan crude; 'topping out' process to begin shortly

US President Donald Trump on Sunday said the United States would use Venezuelan oil to replenish its Strategic Petroleum Reserve (SPR), claiming the reserve had been “virtually emptied” under the previous Joe Biden administration.

“One of the things I am going to do with the Venezuelan Oil is fill up the Strategic National Reserves,” Trump said in a post, adding that the “topping out” process would begin shortly and describing the oil as a “Gift from Venezuela to the People of the United States.”

Also read: Trump says NBC reporter Kristen Welker will be reported to FCC


The Strategic Petroleum Reserve (SPR), the world’s largest emergency crude oil stockpile, is maintained by the US government to help cushion the economy against major disruptions in oil supplies.

Trump has repeatedly criticised the drawdown and pledged to refill the crude reserve.

Trump’s latest comments come against the backdrop of Washington’s shifting approach towards Venezuela, home to some of the world’s largest proven crude oil reserves. US policy towards Caracas has swung between sanctions aimed at former President Nicolás Maduro’s government and limited easing of restrictions to allow certain oil transactions.

"THE BIGGEST OIL DEAL IN WORLD HISTORY”

“The United States of America has just entered into an Agreement with the Country of Venezuela on, THE BIGGEST OIL DEAL IN WORLD HISTORY!” Trump wrote in a post earlier.

Also read: What we know about Trump's deal giving US access to vast oil reserves in Venezuela

The US administration has entered a sweeping agreement with Venezuela that, if realized, could give America access to vast amounts of the South American country’s untapped oil reserves, at cost.

Venezuela’s acting President Delcy Rodríguez’s government in a statement said the deal involves the development of 17 fields with a proven potential of 65 billion barrels. It also stated that the agreement could draw $100 billion in investment into Venezuela's oil industry and yield over $209 billion in taxes for Caracas.

Sharing a post on Telegram, she predicted the deal “will have a significant impact on our nation’s revival.”

What are the terms of the US-Venezuela deal?

According to AP, the US government and an unnamed private operator in Venezuela formed a new company that was given the rights to untapped oil fields for 100 years.

Trump said the agreement was negotiated by Secretary of State Marco Rubio, Defense Secretary Pete Hegseth and Rodríguez.

The oil deal gives the United States 55% effective output of the new company, including an ownership stake and rights to buy oil at cost.

The company would be the second largest corporate holder of proven reserves after Saudi Aramco, according to an official quoted by AP.