Trump touts access to 65 billion barrels of Venezuelan oil in deal he says will slash gas prices

The agreement also allows the U.S. to purchase Venezuelan oil at cost, a provision that could give American buyers access to cheaper crude once production from the fields increases.

According to the firm's report, Venezuela will need "higher drilling activity, extensive workover campaigns, improved infrastructure and significantly greater rig availability."

Since much of Venezuela's crude is heavy and viscous, the country also needs a steady supply of diluents - lighter hydrocarbons blended with the crude to make it thin enough to flow through pipelines and reach refineries and export terminals.

The U.S. Energy Information Administration has also previously weighed in on Venezuela's troubled oil industry.

In October 2023, after the Biden administration lifted most U.S. sanctions on Venezuela's oil sector, the agency said "years of underinvestment and mismanagement" would limit growth.

The Trump administration, however, is betting that U.S. involvement and a massive influx of private investment can reverse the decline.

Trump said Friday the new agreement would greatly increase the U.S. oil supply and "substantially lower Gas Prices for all Americans, long into the future."

U.S. oil companies have been cautious about investing in Venezuela, citing the country's deteriorated infrastructure and uncertain business environment.

ExxonMobil CEO Darren Woods said at the time that he viewed Venezuela as "un-investable."

The Associated Press contributed to this report.