President Donald Trump is framing the deal for a U.S. stake in 65 billion barrels of Venezuelan oil as a victory that will lower gasoline prices and replenish depleted crude reserves. It’s far from certain the plan will lead to either during his presidency — if at all. Trump pushed for a blockbuster move after growing frustrated that private oil companies, including ExxonMobil Holdings and ConocoPhillips, weren’t moving quickly enough to boost production in Venezuela, according to people familiar with the matter.
By starting a new venture directly controlled by the U.S., his administration is seeking to give producers more confidence to commit to developing the 17 oil fields involved in the deal. But the White House hasn’t explained where the $100 billion in expected investment for the deal is supposed to come from. While Trump has been explicit that it won’t be from taxpayers, the private operator working with the U.S. on the deal, North American Blue Energy Partners, isn’t large enough to put that kind of money in by itself.
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