U.S.-Venezuela oil deal won't reduce domestic gasoline prices anytime soon, experts say
Summary
President Donald Trump made a deal to give the U.S. a major role in Venezuela's oil industry, which has large oil reserves but poor infrastructure. Experts say the deal will not lower U.S. gasoline prices soon and will likely take years to have a significant effect.Key Facts
- The U.S. will form a joint partnership with North American Blue Energy Partners, led by a Venezuelan businessman.
- This partnership gains 100-year rights to 17 oil fields in Venezuela, which contain 65 billion barrels of proven oil reserves.
- The Pentagon will own 35% of the company and has the right to buy 20% of the produced oil at no extra cost.
- The partner company plans to invest $100 billion in rebuilding Venezuela’s oil infrastructure.
- Experts say restoring oil production to previous levels could take years and may not lower U.S. gas prices before the November midterm elections.
- Political risks exist since future Venezuelan leaders could change the country’s cooperation with the U.S.
- The deal may change global oil markets by creating a new, government-backed competitor.
- Some U.S. lawmakers criticize the Pentagon’s involvement as misuse of taxpayer money.
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