Trump-Venezuela Oil Deal Raises Questions Over Gas Prices and US Energy Security

Following President Donald Trump's announcement of an oil deal with Venezuela, some have asked whether it will lower gas prices and questioned the longer-term benefits for the US.

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Don't Hold Your Breath: CBS News (Lean Left bias) highlighted that US gas prices are "still above $4 a gallon," saying that "American consumers may be wondering if help is on the way." The article framed the response to this concern around energy experts, who according to the article, said "Don't hold your breath." The article conceded that Venezuela's 65 billion barrels of oil held in proven reserves (oil that geological and engineering information indicates can reasonably be recovered) "could eventually lead to more oil flowing to the U.S.," adding however, that "new fields can take 15 years after discovery to begin producing oil."

Energy-Security Win: Some outlets on the right, like The Washington Examiner (Lean Right) focused more on geo-political implications. The article highlighted that with the deal, the US "now controls about 7% of global oil reserves," adding that "the transaction is also a blow against China's efforts to dominate global natural resources." The Examiner also said that "over time," the deal "will further reduce the geopolitical power Iran can project because of its strategic location adjacent to the Strait of Hormuz." Fox News (Right) said that the new agreement could give the US "access to a 65-billion-barrel crude-oil-prize — an energy security win, even if drivers are unlikely to see benefits quickly."

Many Risks Involved: According to The Washington Post (Lean Left) there are many risks involved with the deal. The article said that "getting the oil out of the ground and to the market could leave U.S. taxpayers exposed to quite a bit of risk," adding that this is one of the points federal officials "have been especially cagey" with. The article cited managing director at ClearView Energy Partners Kevin Book saying, "I don't know the answer to where the money is coming from," adding that "The role the Pentagon is or is not playing remains a mystery." Durability of the agreement is also a risk according to the article, leading companies to ask whether the deal would endure after Trump leaves office, "especially as some Democrats are already signaling they plan to work to unwind it."

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