President Donald Trump recently announced a landmark oil agreement with Venezuela, promising to lower gas prices across the country.
“The United States of America has just entered into an Agreement with the Country of Venezuela on, THE BIGGEST OIL DEAL IN WORLD HISTORY!” President Trump wrote on Truth Social.
According to the president, the deal was negotiated by Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, and Venezuelan Interim President Delcy Rodriguez, in partnership with private business.
The agreement grants the U.S. control of more than 65 billion barrels of “proven” oil reserves in the South American nation.
“This Historic Transaction MORE THAN DOUBLES American Oil Reserves, greatly increases our Oil Supply, and will substantially lower Gas Prices for all Americans…” President Trump claimed.
Rodriguez Elaborates On the Deal
Rodriguez further elaborated on the agreement and its terms on state broadcaster VTV.
“This 25-year bilateral project envisages the development of 17 strategic oilfields with a production target of more than 1.5 million barrels per day,” Rodriguez affirmed.
Rodriguez additionally claimed that the deal could produce roughly $209 billion in tax revenue for Venezuela and draw $100 billion in investment for the country’s oil industry.
The interim leader also asserted that Venezuela retains “ownership of and sovereignty” over its natural resources, “while leveraging capital, technology, and operation expertise to support the recovery of a strategic industry that has been severely affected by sanctions.”
Will Gas Prices Lower Soon?
According to experts, President Trump’s promises of “substantially lower Gas Prices” will not be seen for several years.
Francisco Monaldi, director of the Latin America Energy Program at the Center for Energy Studies at Rice University, told reporters that many of the oil fields in the agreement are still largely underdeveloped.
Another factor involving the agreement and Venezuela’s production capacity is the country’s dilapidated oil infrastructure – an issue that is yet unclear over who will invest in it.
