Will Trump's Venezuela oil deal lower U.S. gas prices? Here's what experts say.
August 31, 2026 / 1:57 PM EDT / CBS News
TL;DR
- President Trump stated a U.S. deal with Venezuela to tap its oil reserves would "substantially lower Gas Prices for all Americans."
- Energy experts are skeptical that the deal will lower gas prices in the near future, citing long timelines for new oil field development.
- Venezuela's oil is heavy crude, making it harder to refine into gasoline compared to the light crude typically processed in the U.S.
- Restoring Venezuela's oil industry to full capacity may require an estimated $100 billion in investment.
- The U.S. government will control 55% of the joint venture with Venezuela, which involves 17 strategic oil fields.
- Past expropriations of assets by Venezuela have led to legal judgments in favor of companies like ExxonMobil and ConocoPhillips, potentially making them hesitant to invest.
- The Iran war is currently having a greater impact on oil prices than the Venezuela deal.