U.S. move to take control of Venezuelan oil unlikely to lower gas prices soon

PHILADELPHIA (WPVI) — Gas prices may be lower than they were a year ago, but analysts say the recent U.S. intervention in Venezuela is not the reason, and any impact from the country’s vast oil reserves could be years away.

Hours after a nighttime raid removed Venezuelan President Nicolas Maduro from his compound, President Trump announced that the United States would oversee the country and assume control of its oil resources.

“We’re going to have our very large United States oil companies, the biggest anywhere in the world, go in, spend billions of dollars, fix the badly broken infrastructure, the oil infrastructure, and start making money for the country,” Trump said.

RELATED | Nicolás Maduro declares ‘I am innocent’ and ‘still president’ in Manhattan court appearance

Venezuela is believed to hold more than 300 billion barrels of oil, but the country currently produces only a small fraction of its potential. As of 2023, its largest oil customer was China, followed by the United States and Spain.

Patrick De Haan of GasBuddy.com, who has tracked the oil industry for decades, said the situation in Venezuela is unlikely to translate into lower gas prices for U.S. drivers anytime soon.

“It’s going to take a long time to see any potential impact in oil production globally,” he said.

SEE ALSO | A timeline of the US military’s buildup and strikes against Venezuela leading to Maduro’s capture

De Haan noted that Venezuela’s infrastructure has suffered from years of underinvestment, which was worsened by U.S. sanctions.

“We’re talking about a massive lack of investment, part of that because of U.S. sanctions, which have made it virtually impossible for Venezuela to maintain its oil infrastructure,” he said.

Rebuilding that system would require billions of dollars from oil companies, many of which previously had assets seized under former President Hugo Chavez. De Haan said investors may hesitate without clarity about who will govern the country moving forward.

For drivers, the takeaway is clear: don’t expect a dramatic drop in fuel prices linked to developments in Venezuela.

“Gas prices are still going to move up and down, but it’s not going to be anything related to the situation in Venezuela,” De Haan said.

Experts predict prices will rise in late winter as refineries transition to a more expensive seasonal blend.

Meanwhile, oil company stock prices saw a sharp increase following the day’s developments.