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Trump announced a massive oil deal with Venezuela. Why it won’t lower gas prices anytime soon
Experts say the 25-year pact could take five to seven years to raise output, limiting any near-term relief at U.S. pumps.
- On Friday, President Donald Trump announced a deal securing U.S. control of 65 billion barrels of Venezuela's oil reserves, with Secretary of State Marco Rubio citing nearly $100 billion in private investment and Trump promising it would "substantially lower gas prices."
- Venezuela's interim President Delcy Rodriguez announced a 25-year deal to develop 17 oilfields, aiming to boost production to 1.5 million barrels per day from the current 1.2 million bpd, down from a 3.5 million bpd peak.
- David Goldwyn, a former State Department special envoy, warned that because terms remain undisclosed, "we're really still operating on Tweets and rumors," while experts note restoring production will require about $180 billion and five to seven years.
- U.S. drivers paid $4.08 per gallon on average Monday, nearly 30% higher than last year according to AAA, as analysts expect a record-setting Labor Day amid global supply disruptions from Ukraine and Iran conflicts.
- While Chevron expects production to grow up to 50% through 2028, political instability complicates the long-term investment landscape, as analyst McNally noted a Democratic president in 2029 could terminate the agreement.
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6 Articles
6 Articles
With his oil deal with Venezuela, US President Trump wants to compensate for the shortages in the Middle East and provide for rapidly falling petrol prices in his country. But that promises too much, say experts. By S. Jackisch.
·Hamburg, Germany
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Coverage Details
Total News Sources6
Leaning Left1Leaning Right3Center2Last UpdatedBias Distribution50% Right
Bias Distribution
- 50% of the sources lean Right
50% Right
L 17%
C 33%
R 50%
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