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President Donald Trump’s new oil agreement with Venezuela could give the United States access to a 65 billion-barrel crude-oil prize — an energy-security win, even if drivers are unlikely to see benefits quickly.
The deal announced Friday would give the U.S. a stake in 17 Venezuelan oil fields holding an estimated 65 billion barrels of crude, according to Venezuela’s government.
Venezuela controls more than 300 billion barrels of crude reserves, roughly 20% of the world’s total. It is the largest oil stockpile on the planet, exceeding even Saudi Arabia’s.
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Yet Venezuela has long struggled to turn that oil wealth into steady production. Political instability and deteriorating infrastructure have left the country producing only about 1% of the world’s oil despite holding an estimated 17% of global reserves.
For Trump, the potential benefit goes beyond the deal’s headline number.
Venezuela produces heavy crude, the type many Gulf Coast refineries were designed to process. Much U.S. production is lighter shale crude, while Gulf Coast refiners have historically relied on heavier imports from Canada, Mexico and Venezuela.
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A Petroleos de Venezuela SA (PDVSA) oil pumpjack on Lake Maracaibo in Cabimas, Zulia state, Venezuela, on Friday, Nov. 17, 2023. (Gaby Oraa/Bloomberg/Getty Images)
A steadier Venezuelan supply could support Gulf Coast refineries, diversify U.S. oil imports and provide a buffer against future supply disruptions. It could also help replenish the Strategic Petroleum Reserve, which remains well below its 714 million-barrel authorized capacity.
That prospect has taken on added importance as the war with Iran disrupts oil shipments through the Strait of Hormuz. The average U.S. price for regular gasoline stood at about $4.07 a gallon Sunday, according to AAA, compared with roughly $3.19 a year earlier.
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President Donald Trump announced Venezuela will be turning over millions of barrels of oil to the U.S. (Al Drago/Bloomberg via Getty Images)
For Trump, the deal is a bet that long-term access to Venezuelan heavy crude can strengthen U.S. energy security and eventually ease costs for Americans.
Whether it translates into relief at the pump will depend on how quickly Venezuela can turn its vast reserves into market-ready barrels.