Trump Administration's Venezuelan Oil Deal Raises Questions

The Trump administration has announced an agreement with Venezuela to develop the country's vast oil reserves. The U.S. government will enter into a joint venture with a private Venezuelan company, receiving 55% of the oil produced.

Energy experts are skeptical about the deal's potential impact on gas prices in the U.S. Paasha Mahdavi, associate professor of political science at UC Santa Barbara, says 'at cost' deals like this one may not be attractive to investors due to volatility in oil markets.

The agreement raises questions about the legitimacy of the current Venezuelan government, with acting President Delcy Rodríguez coming into office after the U.S. seized and arrested former President Nicolás Maduro. The deal may also face challenges in terms of operational capability, as the U.S. does not have a national oil company.