US Secures Majority Control of Venezuela's Proven Oil Reserves

The US and Venezuela have agreed on a deal that would give the United States majority control of more than 65 billion barrels of Venezuela's proven oil reserves. The agreement involves private companies and 17 oil fields, mostly in the Orinoco Belt, but it doesn't mean those barrels will automatically be added to America's oil inventory.

Proven reserves are not the same as oil inventory; they refer to oil that can reasonably be recovered under existing conditions. The US currently has about 46 billion barrels of proven reserves, so this deal is larger than its entire reserve base. However, those reserves remain in the ground in Venezuela and need investment and infrastructure improvements before production can increase.

The Trump administration argues that increased Venezuelan production could help lower U.S. gasoline prices, but there's no guarantee of an immediate drop at the pump. Developing the infrastructure needed to produce, transport, and refine Venezuelan crude could take years, and experts question whether the deal will have a short-term impact on gas prices.