Brian Zinchuk is editor and owner of Pipeline Online
President Donald Trump on Aug. 21, 2026. Whitehouse photo
WASHINGTON – Through a series of posts on his Truth Social account, President Donald Trump announced what he was proclaiming was the largest oil deal of all time. And given that the other side of the deal hold the largest oil reserves on the plant, he could be right if he pulls it off.
Here’s the first of a series of posts:
BREAKING NEWS: The United States of America has just entered into an Agreement with the Country of Venezuela on, THE BIGGEST OIL DEAL IN WORLD HISTORY! At my direction, Secretary of State Marco Rubio, and Secretary of War Pete Hegseth, working closely with Highly Respected Interim President of Venezuela, Delcy Rodriguez, and, through a partnership with private business, have secured majority U.S. control of more than 65 BILLION BARRELS of proven Oil Reserves in Venezuela, at no cost to the American Taxpayer. This Historic Transaction MORE THAN DOUBLES American Oil Reserves, greatly increases our Oil Supply, and will substantially lower Gas Prices for all Americans, long into the future, while helping to continue to set Venezuela on a course toward Tremendous Success and Great Prosperity. This Transaction will greatly strengthen the already growing relationship between Venezuela and the United States! Thank you for your attention to this groundbreaking matter. MAKE AMERICA GREAT AGAIN! President DONALD J. TRUMP
That, of course, comes after Trump used special forces to snatch the former president of Venezeula Nicolás Maduro from his bedroom on Jan. 3, 2026. He’s apparently cooling his heels in a Brooklyn jail.
- 0135 SASPO-2988_Self serve_2026_YouTube0135 SASPO-2988_Self serve_2026_YouTube
- 0121 Ministry of Energy and Resources April 20260121 Ministry of Energy and Resources April 2026
- 0134 SASPO-2956_ Safety 20260134 SASPO-2956_ Safety 2026
- 0133 LC Trucking hiring Class 1A Payden0133 LC Trucking hiring Class 1A Payden
- 0132 UMWA 20260132 UMWA 2026
- 0129 Turnbull drivers operators0129 Turnbull drivers operators
- 0128 OSY Rentals updated0128 OSY Rentals updated
- 0126 Steel_Reef_Promo_0126 Steel_Reef_Promo_
- 0118 IBEW 30 sec0118 IBEW 30 sec
- 0114 Prospera Bold Vision0114 Prospera Bold Vision
- 0113 Miller Epic Cinematic Hollywood trailer0113 Miller Epic Cinematic Hollywood trailer
- 0102 Lori Carr Coal Extended0102 Lori Carr Coal Extended
- 0099 Mryglod Steel 1080p0099 Mryglod Steel 1080p
- 0095 Fast Trucking nearly 70 years good at it0095 Fast Trucking nearly 70 years good at it
- 0046 City of Estevan This is Estevan Teaser0046 City of Estevan This is Estevan Teaser
- 0077 Caprice Resources Stand Up For Free Speech0077 Caprice Resources Stand Up For Free Speech
- 0061 SIMSA 2024 For Sask Buy Sask0061 SIMSA 2024 For Sask Buy Sask
- 0051 JML Hiring Pumpjack assembly0051 JML Hiring Pumpjack assembly
- 0049 Scotsburn Dental soft guitar0049 Scotsburn Dental soft guitar
- 0032 IWS Summer hiring rock trailer music
- 0022 Grimes winter hiring
- 0018 IWS Hiring Royal Summer
- 0013 Panther Drilling PO ad 03 top drive rigs
- 0002 gilliss casing services0002 gilliss casing services
- 9002 Pipeline Online 30 sec EBEX9002 Pipeline Online 30 sec EBEX
- 9001
The second post, without attribution, is written in the manner of a press release from Venezuela.
It said, “Venezuela announces a historic agreement w ith the United States government, which w ill have a significant impact on our nation’s revival. This initiative is the result of the strengthening of relations between Venezuela and the United States, and it will facilitate a significant flow of investment aimed at the recovery and reconstruction of strategic infrastructure for the development of our hydrocarbons industry.
“I extend my deepest gratitude to the President of the United States of America, Donald Trump, as well as to Secretary of State Marco Rubio and the U.S. government for their support in developing this agreement, which represents a historic milestone in bilateral relations between Venezuela and the U.S.
The agreement will allow for a significant increase in oil production with the participation of private operators. It calls for the development of 17 strategic fields, with a proven potential of 65 billion barrels of oil, an investment of more than $100 billion, and more than $209 billion in taxes for the State. These investments will contribute not only to the recovery and modernization of our industry, but also to our country’s economic growth, the energy security of our hemisphere, and greater balance in international markets.
“Our goal is to move toward consolidating our position as an energy-producing power, putting our immense reserves at the service of national development, job creation, increased income for our workers, and the well-being of our people.
“Venezuela is thus ushering in a new era of recovery, growth, production, security, and prosperity for our people.”
The third post was much simpler, with Trump saying, “Our deal with Venezuela is the biggest oil deal, by far, in World history! President DJT”
- 0135 SASPO-2988_Self serve_2026_YouTube0135 SASPO-2988_Self serve_2026_YouTube
- 0121 Ministry of Energy and Resources April 20260121 Ministry of Energy and Resources April 2026
- 0134 SASPO-2956_ Safety 20260134 SASPO-2956_ Safety 2026
- 0133 LC Trucking hiring Class 1A Payden0133 LC Trucking hiring Class 1A Payden
- 0132 UMWA 20260132 UMWA 2026
- 0129 Turnbull drivers operators0129 Turnbull drivers operators
- 0128 OSY Rentals updated0128 OSY Rentals updated
- 0126 Steel_Reef_Promo_0126 Steel_Reef_Promo_
- 0118 IBEW 30 sec0118 IBEW 30 sec
- 0114 Prospera Bold Vision0114 Prospera Bold Vision
- 0113 Miller Epic Cinematic Hollywood trailer0113 Miller Epic Cinematic Hollywood trailer
- 0102 Lori Carr Coal Extended0102 Lori Carr Coal Extended
- 0099 Mryglod Steel 1080p0099 Mryglod Steel 1080p
- 0095 Fast Trucking nearly 70 years good at it0095 Fast Trucking nearly 70 years good at it
- 0046 City of Estevan This is Estevan Teaser0046 City of Estevan This is Estevan Teaser
- 0077 Caprice Resources Stand Up For Free Speech0077 Caprice Resources Stand Up For Free Speech
- 0061 SIMSA 2024 For Sask Buy Sask0061 SIMSA 2024 For Sask Buy Sask
- 0051 JML Hiring Pumpjack assembly0051 JML Hiring Pumpjack assembly
- 0049 Scotsburn Dental soft guitar0049 Scotsburn Dental soft guitar
- 0032 IWS Summer hiring rock trailer music
- 0022 Grimes winter hiring
- 0018 IWS Hiring Royal Summer
- 0013 Panther Drilling PO ad 03 top drive rigs
- 0002 gilliss casing services0002 gilliss casing services
- 9002 Pipeline Online 30 sec EBEX9002 Pipeline Online 30 sec EBEX
- 9001
Analysis: Implications for Canada
So what does this mean for Canada, should anything come of it?
First of all, several decades ago, the refining complex along the US Gulf Coast retooled for heavy, sour crude as their own domestic supply of light sweet crude declined. Those refineries were retooled to take Venezuelan oil.
As Venezuelan oil production declined, Canadian oil backfilled it, with expanded oil sands and heavy oil production. In effect, Canada spent the last two decades increasingly eating Venezuela’s lunch as its production faltered.
The question then becomes – if the US does become intent on assisting Venezuela in dramatically ramping up production, what then comes of Canadian barrels, most of which are shipped to the US? If Venezuela recaptures the market Canada absorbed from it, and our lack of export pipelines means we have no other options, Canada could find itself in a very serious predicament. Oil exports are the number one contributor to the Canadian economy, and at times out dollar has been referred to as a “petro-dollar.”
So while Canada has been largely smug that the US couldn’t live without our oil, and we’ve been reluctant to use it as leverage in our current trade war with the US, Trump may be right. He’s frequently said he doesn’t need anything from Canada, including our oil. And if he pulls this off, in a few years, he may be right.
- 0135 SASPO-2988_Self serve_2026_YouTube0135 SASPO-2988_Self serve_2026_YouTube
- 0121 Ministry of Energy and Resources April 20260121 Ministry of Energy and Resources April 2026
- 0134 SASPO-2956_ Safety 20260134 SASPO-2956_ Safety 2026
- 0133 LC Trucking hiring Class 1A Payden0133 LC Trucking hiring Class 1A Payden
- 0132 UMWA 20260132 UMWA 2026
- 0129 Turnbull drivers operators0129 Turnbull drivers operators
- 0128 OSY Rentals updated0128 OSY Rentals updated
- 0126 Steel_Reef_Promo_0126 Steel_Reef_Promo_
- 0118 IBEW 30 sec0118 IBEW 30 sec
- 0114 Prospera Bold Vision0114 Prospera Bold Vision
- 0113 Miller Epic Cinematic Hollywood trailer0113 Miller Epic Cinematic Hollywood trailer
- 0102 Lori Carr Coal Extended0102 Lori Carr Coal Extended
- 0099 Mryglod Steel 1080p0099 Mryglod Steel 1080p
- 0095 Fast Trucking nearly 70 years good at it0095 Fast Trucking nearly 70 years good at it
- 0046 City of Estevan This is Estevan Teaser0046 City of Estevan This is Estevan Teaser
- 0077 Caprice Resources Stand Up For Free Speech0077 Caprice Resources Stand Up For Free Speech
- 0061 SIMSA 2024 For Sask Buy Sask0061 SIMSA 2024 For Sask Buy Sask
- 0051 JML Hiring Pumpjack assembly0051 JML Hiring Pumpjack assembly
- 0049 Scotsburn Dental soft guitar0049 Scotsburn Dental soft guitar
- 0032 IWS Summer hiring rock trailer music
- 0022 Grimes winter hiring
- 0018 IWS Hiring Royal Summer
- 0013 Panther Drilling PO ad 03 top drive rigs
- 0002 gilliss casing services0002 gilliss casing services
- 9002 Pipeline Online 30 sec EBEX9002 Pipeline Online 30 sec EBEX
- 9001
Of all the export pipelines now in play, the one closest to being built is the revival of the Keystone XL project, now referred to as the Prairie Connector in Canada and Bridger Pipeline Expansion in the US. The question then becomes is it really a good idea to expand exports to the US if they will soon be displaced by Venezuelan oil? Or should we instead be building pipelines to the various coasts to diversify our markets?
And as Alberta keeps talking about doubling oil production, and Saskatchewan talking about increasing production by a third to 600,000 bpd, the question becomes where will those barrels go?
The harsh reality is that all things being equal, if US demand remains flat, every additional barrel Venezuela produces will displace a Canadian barrel. The shale oil revolution appears to be stalling out, so we might be able to backfill that, to a point, as the shale basins play out and decline.
All of this will take several years – for Venezuela to bring production back online, for Canada to grow production, for Canada to build new export pipelines. But the stage may be soon set.
The timing of this, in the midst of a major trade dispute between Canada and the US if likely no coincidence. Trump may have just played his trump card, as it were. If our biggest customer of our most valuable product no longer needs or wants it, what are we to do?
Additional thoughts from Saturday morning:
The timing of this announcement, combined with the trade war and impending vote in Alberta for potential independence is worrisome. What if Trump says to Alberta, “We no longer need your oil, but if you became a state, then we’ll take it all and build new pipelines for it, too?”
Without a market to sell its oil, Alberta becomes as poor as Manitoba.
Geopolitical strategist Peter Zeihan many years ago spoke of how becoming a state would solve many of Alberta’s problems, from guaranteeing its markets (now domestic supply to the US) to no longer having to pay Quebec’s freight via equalization payments.
“What I’m saying is that every economic, financial, diplomatic, energy, inflationary, and labour problem Alberta has would be solved by this solution,” Zeihan said, referring to Alberta becoming an American states.
Here’s a few videos explaining that:
From several years ago (this repost was five years ago, but was originally published more like a decade ago):
From two months ago, where he’s revised a few of his thoughts:
Even if Alberta doesn’t join the US, increasing heavy oil supply to the US market will most assuredly bring back the large Western Canadian Select/West Texas Intermediate differentials. These days it’s around US$12 a barrel, but a few years ago it was in the $25+ range, even as high as US$40 per barrel. We were basically giving our oil away. And that could very much return, unless we get our oil, lots of it, to markets outside of this continent.
All of this applies to Saskatchewan, too. Our largest contributor to our provincial GDP is oil, according to the Saskatchewan Ministry of Energy and Resources. Recent figures show our heavy oil output is now close to half of our output. All of the arguments about Alberta heavy crude apply to this province, too. Nearly every drop of oil not consumed by the Lloydminster, Regina or Moose Jaw refineries gets exported to the US. Should the US decide it no longer needs our most valuable product, we’re hooped.And there’s zero chance Saskatchewan oil is going to find its way to the Pacific coast. So we, here in Saskatchewan, need to seriously start talking about pipelines to the east, and fast. That Northern Shield Energy Corridor, a modified redux of Energy East, all of a sudden looks real attractive.
- 0135 SASPO-2988_Self serve_2026_YouTube0135 SASPO-2988_Self serve_2026_YouTube
- 0121 Ministry of Energy and Resources April 20260121 Ministry of Energy and Resources April 2026
- 0134 SASPO-2956_ Safety 20260134 SASPO-2956_ Safety 2026
- 0133 LC Trucking hiring Class 1A Payden0133 LC Trucking hiring Class 1A Payden
- 0132 UMWA 20260132 UMWA 2026
- 0129 Turnbull drivers operators0129 Turnbull drivers operators
- 0128 OSY Rentals updated0128 OSY Rentals updated
- 0126 Steel_Reef_Promo_0126 Steel_Reef_Promo_
- 0118 IBEW 30 sec0118 IBEW 30 sec
- 0114 Prospera Bold Vision0114 Prospera Bold Vision
- 0113 Miller Epic Cinematic Hollywood trailer0113 Miller Epic Cinematic Hollywood trailer
- 0102 Lori Carr Coal Extended0102 Lori Carr Coal Extended
- 0099 Mryglod Steel 1080p0099 Mryglod Steel 1080p
- 0095 Fast Trucking nearly 70 years good at it0095 Fast Trucking nearly 70 years good at it
- 0046 City of Estevan This is Estevan Teaser0046 City of Estevan This is Estevan Teaser
- 0077 Caprice Resources Stand Up For Free Speech0077 Caprice Resources Stand Up For Free Speech
- 0061 SIMSA 2024 For Sask Buy Sask0061 SIMSA 2024 For Sask Buy Sask
- 0051 JML Hiring Pumpjack assembly0051 JML Hiring Pumpjack assembly
- 0049 Scotsburn Dental soft guitar0049 Scotsburn Dental soft guitar
- 0032 IWS Summer hiring rock trailer music
- 0022 Grimes winter hiring
- 0018 IWS Hiring Royal Summer
- 0013 Panther Drilling PO ad 03 top drive rigs
- 0002 gilliss casing services0002 gilliss casing services
- 9002 Pipeline Online 30 sec EBEX9002 Pipeline Online 30 sec EBEX
- 9001