Trump Announces Largest Oil Deal in History, Promising Lower Energy Costs

US President Donald Trump on Tuesday hailed the oil deal between the United States and Venezuela as the "largest oil deal in history", promising it would drive down energy costs worldwide. The agreement, which covers 65 billion barrels of oil, was announced at the UN General Assembly, where, Trump said.

it would "benefit both Venezuela and the United States enormously and help drive down the cost of energy all over the world".

Trump highlighted the deal, which was signed by the US and Venezuela, as a major development in the country'It was oil industry. The agreement aims to increase Venezuela's oil production to 1.5 million barrels per day, according to interim President Delcy Rodriguez.

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The deal also covers 17 oil fields with a proven potential of 65 billion barrels.

A joint venture between the US government and a private Venezuelan entity has been established. Granting the consortium a 100-year concession to explore and exploit the country's uncharted oil reserves. The agreement is set to yield significant benefits for the US.

With the nation poised to capture approximately half of the venture's total production value. Courtesy of a substantial ownership stake and preferential access to oil supplies.

However, Venezuela's oil infrastructure is in poor condition and would require years and billions of dollars in investment to repair. Trump has said the agreement will help lower gasoline prices in the US. However, experts believe Venezuelan oil production was unlikely to increase quickly.

Experts at New York University's Center on Global Energy Policy. This includes Amy Myers Jaffe, suggest that a recent deal could have long-term benefits for the US oil industry. However, Kevin Book of ClearView Energy Partners notes that ramping up production would necessitate substantial investments, a process that would likely take several years to materialize.

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Trump also highlighted the US military operation in January to arrest then-President Nicolás Maduro. Saying it was a key moment in the country's transition to democracy. Since that day, hundreds of Venezuelan political prisoners have been freed, Trump said.

Harvard University professor and former Venezuelan planning minister Ricardo Hausmann called the deal and criticized its legitimacy. "The biggest oil companies in the world are going in [to Venezuela], and the numbers are absolutely incredible," Trump said, according to Reuters.

Trump expects to reach a deal with Iran after the November 3 midterm elections, saying it would be a major breakthrough. "observers note we'll make a deal right after the election because it doesn't make sense for them not to. They're waiting to see how I do in the midterm election," Trump said.