The administration says a US stake in Venezuelan oil can curb gasoline prices, but significant investment and years of work would be needed.
President Donald Trump is presenting a planned US stake in 65 billion barrels of Venezuelan oil as a way to lower gasoline prices and replenish crude reserves, but the proposal faces major questions over funding and timing.
The White House has not explained where $100 billion in expected investment would come from. Trump has said taxpayers will not pay, while the private operator working with the US, North American Blue Energy Partners, is not large enough to finance the plan alone.
The administration is seeking to build confidence for producers to develop 17 oil fields. Francisco Monaldi of Rice University said the outcome will depend on who signs on, the contracts involved, and whether the reserves can be proven.
Energy experts said increasing Venezuelan output would require years and substantial capital, limiting the plan’s near-term effect on gasoline prices. Vice President JD Vance said rising Venezuelan production had helped stabilize crude prices.
Venezuela wants output above 1.5 million barrels a day, about 30% above current levels, but many of the fields have little infrastructure and unreliable electricity. Bloomberg Intelligence analysts said unresolved claims and investor caution would limit near-term commitments from US energy majors.
