Trump Touts Historic Oil Deal with Venezuela, Promises Lower Gas Prices
President Donald Trump has announced a historic oil deal with Venezuela, claiming it will substantially lower gas prices for Americans. The agreement gives the US majority control of over 65 billion barrels of proven oil reserves in Venezuela at no cost to American taxpayers.
The White House did not immediately release the full text of the agreement, but according to one US official familiar with the deal, the US will have a 55% effective output of the new joint venture. This includes an ownership stake and guarantees to buy oil at cost.
Experts are skeptical about the immediate impact on gas prices, citing the need for billions of dollars in investment to bring Venezuela's infrastructure up to speed.
Patrick De Haan, head of petroleum analysis for GasBuddy, described the agreement as promising but said drilling and pumping that oil will take a very long time.