The United States secured majority control over 65 billion barrels of Venezuela’s proven oil reserves, around 20% of the 303 billion barrels the South American nation is thought to possess. U.S. drivers are currently paying $4.08 per gallon on average, nearly 30% higher than last year, with prices expected to reach a new all-time high for Labor Day. Venezuela is currently producing around 1.2 million barrels per day, down sharply from a peak of 3.5 million in the late 1990s, and experts estimate it would require about $180 billion in investment through 2040 to return to peak production. The 25-year deal aims to develop 17 oilfields and bring nearly $100 billion in private sector investment, but Orinoco Belt fields would take five to seven years minimum before delivering increased production, making any near-term relief to pump prices unlikely.
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