Trump's Venezuela Deal Promises Record Oil Reserves but Experts Question Immediate Price Impact
US President Donald Trump has announced a historic oil deal with Venezuela, claiming it will 'substantially lower Gas Prices for all Americans'. The agreement grants the US majority control of over 65 billion barrels of proven oil reserves in Venezuela at no cost to taxpayers.
The White House did not release the full text of the deal, but Trump said it will involve the development of 17 strategic fields and an investment of more than $100 billion. This is a reversal of fortunes for the two countries, which had strained relations less than a year ago after Trump ordered the capture of former Venezuelan leader Nicolás Maduro.
Experts are skeptical that the deal will lead to immediate drops in gas prices, citing the time and money required to build up Venezuela's infrastructure. Patrick De Haan, head of petroleum analysis at GasBuddy, noted that drilling and pumping oil from these reserves 'will take a very long time', with changes to fuel prices unlikely in the near future.
Oil executives had previously been hesitant to invest in Venezuela due to its volatile environment, but Trump's administration has insisted US involvement will bring stability. However, conflicts such as the US-Iran economic war and the Russia-Ukraine conflict continue to disrupt global oil supplies, keeping gas prices elevated.