President Trump Secures Majority Stake in Venezuela's Oil Reserves to Lower Future Gas Prices
The administration announced a joint venture with the Venezuelan government to develop 65 billion barrels of the nation's proven oil reserves. Under the agreement, the U.S. government will hold a 55% stake in the venture, obtaining oil at cost. President Trump stated that the deal will substantially lower gas prices for all Americans in the long term. Energy experts and analysts suggest that while the deal is significant, it will not provide immediate relief at the pump. Because many of the 65 billion barrels are located in undeveloped fields, it will take several years, and potentially up to 15 years, for the increased production to impact domestic gas prices. The project is expected to attract nearly $100 billion in private investment to Venezuela and support thousands of jobs. The deal was struck with acting President Delcy RodrĂguez, who granted a 100-year concession to operate in 17 oil fields. However, some analysts note that the deal's long-term viability depends on the user's ability to manage political risks and infrastructure repairs. Currently, the U.S. is only producing oil from Venezuela through Chevron, which remains the only major American company active in the country.
Sources
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Will Trump's Venezuela oil deal lower U.S. gas prices? Here's what experts say.
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