Venezuela Oil Deal Won't Lower Gas Prices Despite Trump's Promise

President Trump recently announced that the US has secured majority control over 65 billion barrels of Venezuela's proven oil reserves, approximately 20% of the country's estimated 303 billion barrels. However, this deal will not significantly lower gas prices for American drivers in the near future. It is estimated to take years for significant production increases.

According to experts, it would require around $180 billion of investment by 2040 to return Venezuela to its peak production levels of 3.5 million barrels per day (bpd). The country's oil infrastructure has been in disrepair since the socialist government took control, currently producing only 1.2 million bpd.

David Goldwyn, former State Department special envoy for international energy affairs under President Barack Obama, stated that 'nothing has been published' about the deal, and they are still operating on 'Tweets and rumors.' Trump promised the agreement would 'substantially lower gas prices for all Americans,' but drivers may not see a decrease anytime soon.

Chevron is currently the only major US oil company active in Venezuela through joint ventures with state-owned PDVSA. Chevron's production in Venezuela has increased 15% to 280,000 bpd this year and expects to grow up to 50% by 2028.