This is what Americans asked for.
President Donald Trump has unveiled a massive new oil agreement with Venezuela that supporters say could strengthen American energy security and eventually provide much-needed relief for drivers at the gas pump.
The agreement gives the United States majority control over a venture involving more than 65 billion barrels of proven Venezuelan oil reserves — an enormous energy resource that could have consequences for American consumers for decades.
Oil trader Phil Flynn went so far as to call the agreement a “generational win” for the United States.
“I think this is a win. It’s a generational win for Americans because it is [going to] lead to a generation of low prices,” Flynn said during an appearance on “Fox & Friends Weekend.”
For Americans frustrated by high gasoline prices and years of instability in global energy markets, the possibility of gaining access to such a massive supply of oil could be welcome news.
But there is an important catch: Americans should not expect prices at their neighborhood gas station to suddenly plunge overnight.
The potential payoff is much bigger — and much longer term.
Trump Announces Massive Venezuela Oil Deal
Trump announced the agreement Friday, describing it as the largest oil deal in history.
The president said Marco Rubio and Hegseth worked with Venezuelan temporary President Delcy Rodriguez to secure the arrangement.
The deal would give the United States a controlling stake in an operation involving more than 65 billion barrels of Venezuela’s proven oil reserves.
Trump said the arrangement was reached through a partnership with private business and would come at no cost to American taxpayers.
The president predicted the deal would significantly expand America’s available oil resources and ultimately help lower gasoline prices.
If those expectations are realized, the consequences could reach far beyond Washington.
Lower and more stable energy prices can affect nearly every part of the economy, from transportation and agriculture to manufacturing and household expenses.
That makes the agreement especially important for working families, retirees and Americans living on fixed incomes who feel the effects of rising energy costs throughout their monthly budgets.
Why 65 Billion Barrels Matters
The sheer amount of oil involved helps explain the excitement surrounding the announcement.
Venezuela possesses the largest proven crude oil reserves in the world, although years of political turmoil, underinvestment and deteriorating infrastructure have prevented the country from producing anywhere close to its full potential.
The new agreement could give American companies a major opportunity to change that.
Flynn argued that U.S. technology and expertise could help unlock resources Venezuela has struggled to develop efficiently.
American energy companies possess some of the world’s most advanced drilling, extraction, refining and infrastructure capabilities.
If those companies eventually make major investments in Venezuelan production, more crude could reach the market.
Greater supply generally creates downward pressure on prices when other market conditions remain favorable.
That is one reason the agreement could eventually matter to ordinary Americans every time they pull into a gas station.
Could Trump’s Deal Lower Gas Prices?
That is likely the biggest question for millions of Americans.
Trump says it will.
Flynn believes the agreement could contribute to lower prices over the long term.
But neither the president’s announcement nor the size of Venezuela’s reserves means gasoline prices will immediately fall.
Oil markets are influenced by numerous factors, including worldwide demand, refinery capacity, production levels, transportation costs, wars, sanctions and decisions made by other major oil-producing nations.
Venezuela also faces another major obstacle: infrastructure.
Years of inadequate investment have left significant portions of the country’s petroleum industry in need of modernization.
Turning enormous underground reserves into oil that can actually be shipped to American refineries will require investment, equipment, workers and time.
Flynn therefore cautioned Americans against expecting an instant drop at the pump.
He cautioned that drivers shouldn’t expect gasoline prices to suddenly drop by 10 cents overnight.
The more significant effect could develop over the years ahead as additional supplies potentially enter the market.
A Potential Victory For American Energy Security
Gas prices are only part of the story.
The agreement could also strengthen America’s long-term energy security.
Recent international conflicts have provided Americans with a painful reminder that events thousands of miles away can quickly affect household expenses back home.
When major oil-producing regions become unstable, fears about supply shortages can send crude prices higher.
Those increases eventually work their way through the economy.
Transportation becomes more expensive. Businesses face higher operating costs. Farmers spend more on fuel. Airlines and trucking companies pay more. Consumers can ultimately see higher prices for everything from groceries to manufactured goods.
Increasing America’s access to petroleum within the Western Hemisphere could provide another layer of protection against those international disruptions.
Instead of depending as heavily on unstable regions overseas, the United States could potentially have access to an enormous supply much closer to home.
For supporters of Trump’s America First energy agenda, that may be one of the agreement’s most important advantages.
What About America’s Strategic Petroleum Reserve?
The agreement is also attracting attention because of concerns surrounding the Strategic Petroleum Reserve.
The SPR exists to provide the United States with emergency crude oil supplies during severe disruptions.
After significant withdrawals in recent years, the condition of America’s emergency reserves has become a major political issue.
Flynn used the Venezuela agreement to make a striking comparison.
“A lot of people are worried about us drawing down our Strategic Petroleum Reserve,” he said. “Now we have the biggest strategic petroleum reserve in history. It’s called Venezuela.”
Venezuela’s oil would not literally become part of the Strategic Petroleum Reserve simply because of the agreement.
But Flynn’s broader point is clear.
Access to tens of billions of barrels of additional petroleum could dramatically improve America’s long-term supply position.
And according to reports about the arrangement, some future production could potentially be used to help replenish U.S. strategic supplies.
Rubio Celebrates ‘America First’ Energy Victory
Secretary of State Marco Rubio praised the agreement as a major achievement for both countries.
Rubio argued that Trump’s foreign policy had secured access to stable energy supplies within the Western Hemisphere while creating the potential for lower gasoline prices at home.
The agreement is also expected to attract substantial private investment into Venezuela’s struggling petroleum sector.
That investment could be critical.
Having oil underground is one thing.
Building the wells, pipelines, facilities and other infrastructure necessary to produce it reliably is another.
If American private-sector investment successfully revitalizes Venezuelan production, supporters believe both countries could benefit.
Venezuela could receive badly needed investment and economic activity, while the United States gains greater access to a massive supply of energy.
Why American Technology Could Change Venezuela’s Oil Industry
Flynn believes U.S. involvement could fundamentally change what Venezuela is capable of producing.
He added that Venezuelans could also benefit, arguing that American expertise, technology, and skilled workers could help develop the country’s oil fields on a scale Venezuela has never previously achieved.
Venezuela’s problem has never been a lack of oil.
The country possesses extraordinary petroleum resources.
The challenge has been converting those resources into reliable production.
Years of economic problems, government mismanagement, sanctions and insufficient investment severely weakened Venezuela’s once-powerful oil industry.
American involvement could potentially bring capital, equipment and technical expertise back into the country.
But major obstacles remain.
Large energy companies will have to decide whether the political and financial risks justify investing billions of dollars.
The condition of Venezuela’s infrastructure will also determine how quickly production can increase.
Those uncertainties are why predictions of dramatically cheaper gasoline should be treated as long-term possibilities rather than immediate guarantees.
Trump’s Venezuela Strategy Marks Dramatic Shift
The agreement also represents a remarkable transformation in America’s relationship with Venezuela.
Earlier this year, U.S. forces captured Nicolás Maduro during an American operation in Venezuela.
The country subsequently entered a political transition under interim President Delcy Rodriguez.
Now Washington and Caracas are cooperating on an energy agreement that could reshape the economic relationship between the two countries.
For Trump, the deal represents another piece of his broader strategy of using American economic, military and diplomatic power to secure tangible benefits for the United States.
Energy is at the center of that strategy.
The president has repeatedly argued that abundant and affordable energy is essential to American prosperity and national security.
This agreement gives him an opportunity to put that philosophy into practice on an extraordinary scale.
The Real Test Comes Next
The announcement is enormous.
The potential is enormous.
But the ultimate results will depend on what happens next.
The existence of 65 billion barrels of oil does not automatically mean 65 billion barrels will quickly reach American consumers.
Companies must invest.
Infrastructure must be repaired or constructed.
Oil fields must be developed.
Production must increase.
And crude must eventually make its way to refineries and into the broader energy market.
That process could take years.
There are also legal, financial and political questions surrounding the unusual arrangement that will need to be resolved as the agreement moves forward.
For that reason, Americans should separate the immediate political significance of the announcement from its eventual economic impact.
What This Could Mean For American Families
If the agreement works as intended, however, the long-term implications could be substantial.
A reliable source of additional oil could help reduce America’s exposure to future international supply shocks.
Greater supplies could put downward pressure on energy prices.
American refineries could gain access to more crude from within the Western Hemisphere.
The country’s strategic energy position could become stronger.
And consumers could ultimately benefit from a more stable fuel market.
Those effects would matter far beyond the gas station.
Energy prices influence nearly every sector of the American economy.
When fuel becomes more expensive, the cost of moving food, merchandise and raw materials rises with it.
When energy becomes more affordable and predictable, businesses have greater certainty and families can keep more money in their pockets.
For older Americans and retirees living on fixed incomes, even modest reductions in recurring expenses can make a meaningful difference.
A ‘Generational Win’ — If The Deal Delivers
Trump is presenting the Venezuela agreement as one of the largest energy achievements in American history.
Flynn believes its importance could be measured in generations.
There are legitimate reasons for optimism.
More than 65 billion barrels represents an extraordinary resource, and American energy technology could help Venezuela increase production significantly over time.
There are also reasons for patience.
Rebuilding an oil industry does not happen overnight, and numerous economic, political and logistical challenges remain.
The real measure of Trump’s deal will therefore not be the announcement itself.
It will be whether American companies can turn Venezuela’s enormous underground reserves into reliable supplies — and whether those additional supplies eventually translate into lower costs for American consumers.
If that happens, the agreement could become much more than another foreign-policy announcement.
It could provide the United States with greater energy security, reduce America’s vulnerability to overseas disruptions and give families something they have been waiting for: lasting relief from high energy costs.
That would make Flynn’s description of the agreement as a “generational win” particularly significant.
For now, Americans will be watching one number above all others:
The price at the pump.
