Former President Donald Trump has suggested that a deal involving Venezuela's oil reserves could lead to lower gas prices. However, energy analysts point to significant hurdles that would likely delay any tangible impact on the U.S. market, potentially for years.
Developing Venezuela's extensive oil reserves requires substantial investment and extensive infrastructure work, according to experts. "Changes to fuel prices won’t happen overnight or even in months," said one analyst, emphasizing that drilling and pumping oil is a lengthy process. The global refining capacity is also a limiting factor, potentially slowing the speed at which increased crude supply could affect market prices.
Analysts suggest that consumers should anticipate a considerable timeline between the initial investment in Venezuela's oil sector and the eventual production and distribution of oil. This process could take "several quarters and, in quite a few cases, years," leading to benefits that would be realized "mostly in the medium-long term."
For a more immediate impact on gasoline and diesel prices, experts indicate that increasing supply from the Middle East is the most effective method. Developments such as pipelines and ports being constructed across the Gulf could help bypass traditional chokepoints like the Strait of Hormuz. Officials have yet to provide a public timeline for any potential Venezuelan oil initiatives.