Trump's Venezuela Oil Deal Faces Skepticism Over Timely Benefits
President Donald Trump has touted his new oil agreement with Venezuela as a historic deal that could lower gasoline prices for Americans. However, industry experts and energy analysts are skeptical about the benefits of this agreement.
The deal involves the U.S. government taking a 35% stake in North American Blue Energy Partners (NABEP), a private company securing contracts to operate 17 Venezuelan oil fields containing approximately 65 billion barrels of reserves. The United States will also receive preferential access to some of the oil produced under the arrangement.
Trump has claimed that this agreement would 'substantially lower Gas Prices for all Americans.' However, experts say it's unlikely that the benefits of this deal will materialize anytime soon. According to Tracy Shuchart, a senior economist at futures trading platform NinjaTrader, 'the barrels that could actually move a U.S. pump price are 5 to 15 years out.'
Venezuela's oil industry has been severely damaged due to underinvestment, deteriorating infrastructure, and political instability. The country's crude is also particularly heavy, making it more complicated and expensive to extract, transport, and refine than lighter grades.