Deal will entitle US to majority control over oil pumped from 17 Venezuelan oil fields
President Donald Trump on Friday touted an agreement with Venezuela that he said would lower gas prices by giving the U.S. majority control over 65 billion barrels of oil from the South American country’s proven reserves.
The breakthrough comes as disruptions to global energy markets from the Iran war continue to push up prices at the pump, with Americans now paying an average of $4.08 per gallon for regular gasoline, up from $3.20 a year ago, according to AAA.
The agreement with Venezuela will give the U.S. a 55% effective interest in the output of a new private company formed to manage the reserves, a U.S. official familiar with the deal told The Associated Press.
While the U.S. will not immediately gain access to 35.75 billion barrels of oil, the 55% interest applies to the oil ultimately produced by the 17 Venezuelan fields covered by the agreement.