US Secures Control Over 65 Billion Barrels of Venezuelan Oil Reserves
US President Donald Trump announced an oil deal with Venezuela that could give the United States control over more than 65 billion barrels of proven petroleum reserves. This is a significant development, as it would exceed America's currently reported domestic proved reserves.
The agreement involves the development of 17 Venezuelan oil fields and could attract $100 billion in private investment while generating over $209 billion in taxes for Venezuela. The US would receive an effective 55% share of the company's output through a combination of ownership and rights to purchase oil at cost, with some of that petroleum expected to be used to replenish the Strategic Petroleum Reserve and supply the U.S. military.
Energy analysts cautioned that bringing substantial new Venezuelan production online could take years, due to infrastructure needs, underinvestment, and political instability in Venezuela. Trump's promise to 'substantially lower Gas Prices for all Americans' is a significant concern for Mainers, who are already facing high gas prices of $4.12 per gallon on average.