Venezuela Oil Deal May Be Years Away from Lowering US Gas Prices

The White House claims that a U.S.-Venezuela deal will 'substantially lower' gas prices for Americans, but experts say this is unlikely in the near term. The agreement involves developing 17 strategic oil fields in Venezuela with proven reserves of 65 billion barrels. New fields can take 15 years or more to begin producing oil, and even that timeline may be optimistic due to geopolitical risks and the difficulty of refining Venezuela's heavy crude.

Energy experts predict it could take five to 15 years for Venezuelan oil to flow into the U.S. in sufficient quantities to affect domestic gas prices. The deal faces potential legal and operational obstacles, making it unlikely to boost production anytime soon. Venezuela has suffered from underinvestment, with at least $100 billion needed to restore its oil fields to full capacity.

The agreement is structured as a private joint venture, with the U.S. government controlling 55% of the project. The deal aims to attract nearly $100 billion in private investment and support thousands of jobs. However, even after the recent intervention in Venezuela, American oil companies remain hesitant to re-enter the country due to historical concerns and ongoing legal disputes.