Venezuela Oil Deal Sparks Skepticism Over Legitimacy and Impact on Gas Prices

The Trump administration has announced an agreement to develop Venezuela's vast oil reserves through a joint venture. The U.S. would receive 55% of the oil, approximately equivalent to 65 billion barrels.

Paasha Mahdavi, associate professor at UC Santa Barbara, says there are many reasons to be skeptical about this deal. He notes that the idea of the U.S. government becoming a shareholder in this joint venture is 'extremely unusual' due to the lack of a national oil company in the U.S.

Gerald Kepes, president of Competitive Energy Strategies, points out that the U.S. does not own a national oil company like Saudi Aramco or Mexico's Pemex. This raises questions about who will operate on the ground and how this partnership will work.