US Scores Big with Venezuela Oil Deal, But Fuel Price Relief May Be Years Away

The US government has announced a deal to take control of Venezuela's massive oil reserves, which it claims will double America's oil reserves and lower fuel prices for its citizens.

The agreement between the Trump administration and North American Blue Energy Partners, a private oil exploration company, grants 100-year concessions to develop 17 oil fields in Venezuela. The joint venture has estimated reserves of 65 billion barrels of oil, more than the total amount currently stored in US stocks.

The deal requires that a majority of North American Blue Energy Partners' board members be US citizens and gives the US government veto power over the board. In return, the US will take a 35% equity stake in the company through the Pentagon's Office of Strategic Capital, which was set up under the Biden administration.

However, experts warn that it may take years for the deal to have any significant impact on energy prices, as Venezuela's oil sector needs major investment and infrastructure upgrades. The country has been plagued by underinvestment, ageing infrastructure, and US sanctions since 2005.