US Wins Control Over 65 Billion Barrels of Venezuelan Oil Reserves

The United States and Venezuela have reached a preliminary agreement that gives U.S. companies control over 17 Venezuelan oil fields holding an estimated 65 billion barrels of crude oil reserves.

The deal, which extends for 25 years, is a significant boost to the U.S.'s energy security and its allies. It also reduces China's influence in global natural resources and limits Iran's geopolitical power.

However, experts say that the agreement will have little impact on current gasoline prices and national prices over the next several years. Venezuela's oil exports are expected to increase by 100,000 barrels a day by the end of 2027, which is just 0.1% of daily global consumption.

The real winners from this deal could be major oil services companies like SLB, Halliburton, and Baker Hughes. These companies will benefit from the $100 billion in capital investment required to restore Venezuela's heavily degraded upstream and midstream infrastructure.