Trump Unveils 'Biggest Oil Deal' with Venezuela, But Experts Warn of Long-Term Challenges
President Donald Trump announced 'THE BIGGEST OIL DEAL IN WORLD HISTORY' in Venezuela, which gives the United States a stake in the country's vast oil reserves. The deal involves a new company formed with an unnamed private operator that will develop 17 untapped fields with a proven potential of 65 billion barrels.
The agreement could draw $100 billion in investment into Venezuela's oil industry and yield over $209 billion in taxes for Caracas, according to a statement from acting President Delcy Rodríguez. The deal gives the United States 55% effective output of the new private company, including an ownership stake and rights to buy oil at cost.
American purchases of the oil will go toward the U.S. strategic oil reserves along with the military. Trump claims that this deal will help lower gas prices for Americans, but experts warn that it may take years and billions of dollars to repair Venezuela's dilapidated oil infrastructure.