Trump claims new deal with Venezuela will help lower elevated gas prices as midterms approach

Venezuelan interim president Delcy Rodriguez declared on Saturday that the United States energy deal would endure for a quarter-century. The agreement aims to elevate crude output to 1.5 million barrels per day (bpd) and safeguard the nation's control over its natural resources. Rodriguez hailed the historic pact as a means to revitalize the economy and enhance government revenue.

The 25-year bilateral project targets the development of 17 strategic oilfields, with the agreement's initial goal set at 1.5 million bpd. Rodriguez emphasized that the target is merely a starting point and that the broader plan also encompasses the creation of eight greenfield oil blocks as part of a larger expansion of the country's energy sector.

President Donald Trump had announced the US's intent to assume partial control of Venezuela's vast oil reserves, confident that American companies could revive the South American nation's struggling energy industry while providing an alternative crude source to help reduce US fuel prices. The agreement is projected to generate approximately US$209 billion in revenue for the Venezuelan state, contingent on a benchmark oil price of US$65 per barrel.

Rodriguez assured that Venezuela would retain ownership and sovereignty over its natural resources while benefiting from capital, technology, and operational expertise to rehabilitate a sector severely impacted by sanctions. Pro-government demonstrators convened in Caracas to protest the US's presence in Venezuela, but Rodriguez expressed her support for the agreement, stating it would stimulate economic growth and augment government revenue.

Venezuelan authorities are preparing to sign new agreements granting oil exploration and production rights to multiple companies, including US firms, such as Chevron, as they transition to the nation's revised energy framework.