Trump Secures Major Oil Deal with Venezuela, Aims for Lower Energy Costs
President Donald Trump announced that his administration has entered an agreement with Venezuela to access its vast oil reserves. The deal, negotiated by Secretary of State Marco Rubio and Defense Secretary Pete Hegseth, gives the US a 55% effective output in a new private company created to develop the reserves.
The agreement allows for the US to partner with a private operator in Venezuela to take hold of the reserves, which have an estimated 65 billion barrels. The deal would grant the company 100-year rights to develop the oil fields and is expected to draw $100 billion in investment into Venezuela's oil industry, yielding over $209 billion in taxes.
Trump faces pressure to address high gas prices, with the average price of gas in the US standing at about $4.09 a gallon on Friday. The deal could potentially lead to lower gas prices in the US, but experts have warned that a substantial boost in Venezuelan oil production will not happen quickly due to the need for repairing and expanding infrastructure.