Trump says US will refill Strategic Petroleum Reserve using Venezuelan oil

World The US reserve sits near a 44-year low at about 290 million barrels as a new Venezuela deal seeks to lift crude supply. Flames rising from flare stacks at the Amuay refinery in Los Taques, Venezuela, on Jan 14, 2026. (File photo: AP/Matias Delacroix) 31 Aug 2026 03:20AM (Updated: 31 Aug 2026 06:51AM) WASHINGTON: US President Donald Trump said on Sunday (Aug 30) that oil from a recently struck deal with Venezuela will be used to replenish the Strategic Petroleum Reserve, which has been drawn down sharply in recent years to respond to global supply disruptions and high fuel prices.Trump said in a social media post that the "topping out" process will begin shortly, describing the Venezuelan oil as a "Gift from Venezuela to the People of the United States".It is unclear how quickly the Venezuela deal could provide oil for the reserve or deliver any near-term benefit to US motorists. The agreement Trump announced on Friday is aimed at reviving Venezuela's battered oil industry, but it will require significant investment and infrastructure work before production can rise substantially.The reserve held about 290 million barrels as of Aug 21, near a 44-year low, after the United States drew down its stockpile under both the Biden and Trump administrations in response to global supply disruptions, including Russia's invasion of Ukraine and the conflict with Iran. President Donald Trump speaks during an event on Friday, Aug 28, 2026, at Johnson Space Center in Houston. (Photo: AP/Mark Schiefelbein) AGREEMENT FOR 25 YEARSVenezuelan interim President Delcy Rodriguez said on Saturday that an energy agreement with the US would remain in force for 25 years, target an increase in crude output to 1.5 million barrels per day (bpd) and preserve the country's sovereignty over its natural resources.Rodriguez hailed the accord in a late-night address as a "historic" deal that would help revive the economy and boost government revenue, saying it would help shape the country's future."This 25-year bilateral project envisages the development of 17 strategic oilfields with a production target of more than 1.5 million barrels per day," Rodriguez said on state broadcaster VTV."That figure relates solely to the bilateral agreement between Venezuela and the United States." File photo of Venezuela's acting President Delcy Rodríguez speaking during a press conference in Caracas, Venezuela, on July 2, 2026. (Photo: AP/Pedro Mattey, File) Rodriguez added that the agreement's target of 1.5 million bpd was only an initial goal and that the broader plan also included the development of eight greenfield oil blocks as part of a wider expansion of the country's energy sector.Venezuela has the world's largest proven oil reserves, but it produces only about 1.25 million bpd - far below its potential - after years of underinvestment, mismanagement and sanctions.Rodriguez said the agreement could generate about US$209 billion in revenue for the Venezuelan state, based on a benchmark oil price of US$65 per barrel, though she acknowledged crude prices could fluctuate. She said roughly US$19 from each barrel produced and sold under the arrangement would flow directly to Venezuela, providing a significant boost to government revenue.She said that the country retained "ownership of and sovereignty" over its natural resources, "while leveraging capital, technology and operational expertise to support the recovery of a strategic industry that has been severely affected by sanctions".