US President Donald Trump said oil from a recently announced agreement with Venezuela will be used to replenish the Strategic Petroleum Reserve, which has been drawn down sharply in recent years in response to global supply disruptions and high fuel prices.
Trump said on Sunday that the process of filling the emergency stockpile would begin shortly, describing the Venezuelan crude as a “Gift from Venezuela to the People of the United States.”
The Strategic Petroleum Reserve held about 290 million barrels as of August 21, near a 44-year low.
The United States has drawn down the stockpile under both the Biden and Trump administrations amid disruptions including Russia’s invasion of Ukraine and the conflict involving the United States, Israel and Iran.
Trump also blamed former President Joe Biden for the reserve’s depleted level.
It remains unclear how quickly oil from Venezuela could reach the reserve or provide any near-term benefit to US motorists.
The agreement announced by Trump on Friday is intended to revive Venezuela’s oil industry, but substantial investment and infrastructure work will be required before production can increase significantly.
Venezuela’s interim President Delcy Rodriguez said Saturday that the 25-year agreement covers 65 billion barrels of Venezuelan oil while preserving the country’s ownership and sovereignty over its resources.
The project calls for developing 17 strategic oilfields with an initial production target of 1.5 million barrels per day, alongside eight greenfield oil blocks.
Rodriguez said $19 from every barrel produced and sold to the United States would flow to Caracas, potentially generating $209 billion annually depending on oil prices.
She said Venezuela would retain ownership of its natural resources while using outside capital, technology and operational expertise to support the industry’s recovery.
The agreement comes amid sustained US pressure on Caracas since January, when US special forces abducted then-President Nicolas Maduro and Venezuela’s Supreme Court transferred leadership to his vice president, Rodriguez.