President Donald Trump announced on Sunday that the United States intends to leverage its newly acquired dominance over billions of barrels of Venezuelan crude to bolster the country's dwindling Strategic Petroleum Reserve (SPR). In a post on Truth Social, Trump stated, "I plan to fill the nation's Strategic Petroleum Reserve with Venezuelan oil," while accusing former President Joe Biden of having depleted the stockpile. He added, "The filling process will begin promptly, a generous gift from Venezuela to the American people."

The SPR currently holds roughly 289.7 million barrels, a figure that represents only about 40% of its total designed capacity of more than 700 million barrels. Both the Trump and Biden administrations have made substantial withdrawals from the reserve over the years. Last Friday, Trump indicated that Washington is partnering with private firms to take control of Venezuela's proven reserves, estimated at 65 billion barrels. US officials have described the plan as one that would create the world's second-largest private oil company and secure American supply for decades to come.

According to a US official, the arrangement would see American interests control 55% of effective production through a joint venture, with crude acquired at cost. However, doubts persist over whether output can be increased quickly, given Venezuela's aging infrastructure, unstable electricity supply, and a legacy of significant environmental liabilities. As previously reported, companies including Chevron Corp (NYSE: CVX) are in talks to expand their Venezuelan operations, while Italy's Eni SpA (NYSE: E) has also confirmed it is collaborating with local authorities to help restore production levels.

Trump has not yet provided further details on the operational mechanics of the plan, and the US Department of Energy has not immediately responded to requests for comment. Analysts point out that the heavy, high-sulfur crude from Venezuela's Orinoco Belt poses considerable logistical and technical hurdles if it were to be injected directly into the underground salt caverns that form the SPR. In January, following reports that Washington was considering sending Venezuelan oil to domestic refineries while backfilling the reserve with US-produced barrels, the Energy Department denied the proposal, stating it was "not under consideration."

The vast reserve system, established after the Arab oil embargo of the 1970s, has been difficult to replenish, partly because Congress has been reluctant to approve the billions of dollars required. With the SPR at its lowest point in over four decades, the US announced in March that it would coordinate with other nations to release 172 million barrels following the onset of the Iran conflict. During the Biden administration, multiple releases were also executed in response to events such as the Russia-Ukraine war, drawing down hundreds of millions of barrels in total.