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Will Trump's Venezuela oil deal lower U.S. gas prices? Here's what experts say.
cbsnews.com • • nation
Key Points:
- President Trump announced a U.S. deal with Venezuela to develop 17 oil fields containing 65 billion barrels of proven reserves, aiming to lower U.S. gas prices long-term, but experts warn benefits could take 5 to 15 years to materialize.
- Venezuela’s oil production faces challenges due to underinvestment, geopolitical risks, and the heavy crude nature of its oil, with the country needing around $100 billion to restore full capacity.
- The joint venture grants the U.S. government a 55% stake and is expected to attract nearly $100 billion in private investment, though legal and operational hurdles remain, including past asset expropriations by Venezuela.
- Despite the announcement, immediate impacts on gas prices are unlikely, especially with current geopolitical tensions like the U.S.-Iran conflict influencing oil markets more significantly.
- President Trump plans to meet with U.S. energy companies to discuss refining capacity and supply chain improvements as part of his energy dominance agenda to reduce consumer fuel costs.
