Trump claims US gains majority control of Venezuela’s huge oil reserves A $65 billion-barrel gambleDonald Trump has announced what he describes as a “historic transaction” giving the United States majority control of more than 65 billion barrels of proven Venezuelan oil reserves — and he says American motorists will ultimately feel the benefit at the petrol pump. The announcement comes at a politically sensitive moment, with US gasoline prices above $4 a gallon and the midterm elections less than two months away. Trump said the agreement would “more than double” America’s oil reserves, increase supplies and substantially reduce gasoline prices “long into the future.” It is an extraordinary claim — and an extraordinary deal. America takes the majorityAccording to a White House official, the agreement creates a new private joint venture that will have the equivalent of the world's second-largest private oil company by reserves. The United States is expected to receive a 55% effective share of the venture's output through a combination of equity ownership and guaranteed oil purchases. The White House says Venezuela's interim president, Delcy Rodríguez, has granted the private company concessions lasting 100 years. The administration says the project could attract almost $100 billion in private investment and help rebuild Venezuela's shattered oil industry. Secretary of State Marco Rubio called it a “huge win” for both countries. Trump wants cheaper fuelThe timing is hardly accidental. The six-month war with Iran has disrupted a major portion of global oil supplies, while the Strait of Hormuz remains severely restricted. Commercial oil stockpiles have been heavily depleted and America's emergency petroleum reserves are at their lowest level since the early 1980s. That has left the White House facing a politically awkward combination of expensive fuel and an election approaching rapidly. Trump is now pointing toward Venezuela as part of the answer. The world's largest proven oil reserves are sitting in a country that, until recently, was one of Washington's bitterest adversaries. From Maduro to American oilThe transformation has been remarkable. In January, US forces captured Venezuelan leader Nicolás Maduro and brought him to New York to face criminal charges. Trump subsequently said American companies would help rebuild Venezuela's oil industry. Venezuelan lawmakers later approved changes making it easier for foreign companies to participate in the country's petroleum sector. Now Washington says billions of dollars of private investment could flow into Venezuela — with American interests holding a dominant position in the resulting oil operation. But 65 billion barrels don't appear overnightThere is an important catch. Having access to enormous reserves is not the same thing as producing enormous quantities of oil immediately. Venezuela's oil industry has suffered years of underinvestment, mismanagement, sanctions and deteriorating infrastructure. Getting production back to substantial levels will require enormous investment, modern equipment and time. And even if production rises dramatically, that does not mean gasoline prices will suddenly collapse in America. Global oil prices are influenced by wars, shipping routes, OPEC policy, refinery capacity and worldwide demand — not simply by how much oil sits underground. Venezuela gets something tooFor Rodríguez, the deal offers a route back into the international energy market and potentially billions of dollars for a country desperately short of investment. She said Venezuela's goal was to use its enormous reserves to create jobs, increase national income and rebuild the country's economy. Washington is betting that American investment can turn Venezuela's extraordinary natural wealth into a reliable source of oil for the Western Hemisphere. Trump, meanwhile, is betting that more Venezuelan oil will mean lower prices for Americans. The bigger pictureThe Venezuela deal also fits into a much larger American strategy. Iran has demonstrated how vulnerable global oil supplies can become when a major shipping route such as Hormuz is threatened. Washington is therefore looking for alternatives — and Venezuela possesses something America urgently needs: vast quantities of oil sitting much closer to home. For Trump, the political message is equally straightforward. After months of war, depleted reserves and painful fuel prices, he can now point to Venezuela and say America is going after the energy resources needed to restore supply. Whether the deal ultimately delivers cheaper gasoline remains to be seen. But one thing is already clear: Trump is turning Venezuela from America's former oil pariah into a potentially enormous American energy partner. SOURCE
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