Trump Touts Massive Venezuela Oil Deal, Says 65 Billion Barrels Will Help Slash Gas Prices

President Donald Trump is touting a sweeping new oil agreement with Venezuela that gives the United States a majority interest in production from fields containing more than 65 billion barrels of proven reserves, a deal he says will eventually bring substantially lower gas prices to American drivers.

The agreement comes as Americans face renewed pain at the pump amid disruptions to global energy markets caused by the Iran war. Regular gasoline is averaging about $4.08 per gallon nationwide, compared with roughly $3.20 a year ago, increasing pressure on the administration to expand energy supplies and bring prices back down.

Under the agreement, the United States will receive a 55% effective interest in the output of a newly formed private company responsible for managing oil production from 17 Venezuelan fields. That does not mean the U.S. immediately receives 55% of the 65 billion barrels underground, but it gives America a majority interest in the oil ultimately produced through the venture.

The arrangement also gives the United States the ability to purchase Venezuelan crude at cost. That provision could become particularly significant as production expands, potentially giving American buyers access to a large and comparatively inexpensive source of oil in the Western Hemisphere.

Trump has described the agreement as a historic victory for American energy security. He said the massive transaction will greatly increase the oil supply available to the United States while helping lower gasoline prices for Americans “long into the future.”

The president has repeatedly made lower energy costs a centerpiece of his economic agenda. His administration argues that increasing reliable supplies of oil can reduce costs not only at gas stations but throughout the economy, where energy prices affect transportation, manufacturing, agriculture and shipping.

Secretary of State Marco Rubio said the agreement is also expected to attract nearly $100 billion in private investment into Venezuela. The administration is betting that American capital, technology and energy expertise can help revive an oil industry that has suffered from years of underinvestment, deteriorating infrastructure and government mismanagement.

Venezuela possesses some of the largest proven petroleum reserves anywhere in the world, but actually extracting that oil presents substantial challenges. Much of the country’s crude is extremely heavy, requiring lighter hydrocarbons known as diluents before it can efficiently move through pipelines and reach refineries.

The country will also need extensive drilling, infrastructure repairs, additional equipment and significantly greater investment before production can increase dramatically. Energy researchers have estimated that Venezuelan production could rise considerably by 2028 if those improvements are successfully made.

That means Americans should not expect gasoline prices to suddenly plunge immediately after the deal. Rebuilding Venezuela’s damaged energy infrastructure could require years and billions of dollars before the full benefits of increased production reach global markets.

The Trump administration believes the long-term payoff could nevertheless be enormous. Bringing tens of billions of barrels under a U.S.-linked production arrangement could provide America with another major source of crude while reducing exposure to supply disruptions in more volatile parts of the world.

Convincing American oil companies to invest heavily in Venezuela could be another obstacle. Some executives have previously expressed serious concerns about the country’s political history, deteriorated infrastructure and uncertain investment environment.

ExxonMobil CEO Darren Woods previously described Venezuela as “un-investable,” highlighting the skepticism the administration may need to overcome before private companies commit the enormous sums required to rebuild the country’s petroleum industry.

Trump is betting that the new political and economic environment will change those calculations. His administration believes a large influx of private investment can reverse years of decline and transform Venezuela into a much more reliable supplier for the American market.

If that strategy succeeds, the deal could reshape energy markets across the Western Hemisphere. Trump says the result will be a larger and more secure oil supply for the United States — and, over time, substantially lower gasoline prices for millions of American families.