Trump Promises His Venezuela Oil Deal Will Lower Gas Prices. But When?
Developing the country’s vast oil reserves will require significant investment and infrastructure work—and officials have provided no public timeline.
President Donald Trump announced a historic deal with Venezuela on Friday, claiming it would give the U.S. majority control over over 65 billion barrels of oil reserves and lower gas prices for all Americans. However, the White House has not provided specifics on when Americans can expect the benefits to trickle down to the gas pumps.
The deal, brokered by the Trump Administration, focuses on developing 17 strategic oil fields in Venezuela, which possess a total potential of 65 billion barrels of oil. Despite Venezuela's vast reserves, the country only produced roughly 1.1 million barrels per day in July 2024, according to estimates from the Organization of the Petroleum Exporting Countries.
The EIA attributes Venezuela's production decline over the past decade to government mismanagement, international sanctions, and economic crisis. The deal is expected to bring in over $100 billion in investment and $209 billion in tax revenue for Venezuela. Private operators, including a joint project of the U.S. government and an experienced private operator in Venezuela, are set to play a key role in increasing oil production.
The U.S. would control 55% of the new company's effective output, with the oil being sold at cost to the U.S. strategic petroleum reserve and military. However, experts such as Claudio Galimberti, the chief economist at Rystad Energy, believe the deal can help rejuvenate Venezuela's aging infrastructure and increase production at a faster rate.
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