President Trump revealed that the U.S. has secured majority control over 65 billion barrels of Venezuela's proven oil reserves, which represents about 20% of the country's total estimated reserves. However, experts caution that substantial investments are necessary to extract these reserves, and the deal's legality and long-term viability remain uncertain.
Current gas prices in the U.S. average $4.08 per gallon, nearly 30% higher than last year, driven by geopolitical tensions affecting oil supply. Analysts predict that gas prices could reach record highs by Labor Day, with the previous record being $3.83 per gallon in 2012.
Venezuela's oil production is currently around 1.2 million barrels per day, significantly down from its peak of 3.5 million bpd in the late 1990s, and it is estimated that $180 billion in investment is needed to restore production levels.
While Secretary of State Marco Rubio claims the deal could attract nearly $100 billion in private investment, experts like David Goldwyn and Bob McNally emphasize that any increase in production will take years and face numerous challenges, including aging infrastructure and political risks.
Chevron, the only major U.S. oil company currently operating in Venezuela, has increased its production but is also constrained by export terminal limitations. Overall, while the deal may hold potential for the future, it is unlikely to impact gas prices in the near term