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The U.S. Venezuela oil deal won't lower your gas prices. Here's what you need to know
NPR • • general
Key Points:
- The Trump administration announced a joint venture agreement with a private Venezuelan company to develop Venezuela's oil reserves, with the U.S. expected to receive 55% of the oil, equivalent to about 65 billion barrels underground.
- Experts express skepticism about the deal, noting the unusual nature of U.S. government involvement in oil operations since the U.S. lacks a national oil company to manage such ventures.
- The deal's "at cost" oil pricing may deter American and international oil companies, as it limits potential profits during periods of high oil prices.
- Questions remain about the legitimacy of Venezuela's current government under acting President Delcy Rodríguez, who assumed power after Nicolás Maduro's arrest, raising concerns about the deal's long-term stability.
- Analysts agree the agreement will not immediately affect U.S. gas prices, as the oil fields involved are largely undeveloped and production increases would take years to materialize.
