President Trump on Friday said a U.S. deal with Venezuela to tap its oil reserves “will substantially lower Gas Prices for all Americans, long into the future.” With the average U.S. gas price still above $4 a gallon nationwide, American consumers may be wondering if help is on the way.
Don’t hold your breath, energy experts said.
The agreement with the U.S. involves the development of 17 strategic oil fields in Venezuela that hold proven reserves of 65 billion barrels of oil, Venezuelan state media reported on Saturday. Although tapping the crude could eventually lead to more oil flowing to the U.S., new fields can take 15 years after discovery to begin producing oil, according to Global Energy Monitor, a nonprofit that tracks energy infrastructure.
That timeline may even be on the optimistic side, the group added, citing geopolitical risk and the nature of Venezuela’s oil. The country’s so-called heavy crude is harder to refine into gas than the light crude U.S. refiners typically process.
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