'It will still take years': Ted Cruz acknowledges that Trump's Venezuela oil deal won't lead to immediate gas savings

In an episode of his podcast Verdict, Cruz said such a “massive amount” of oil was a boon for the overall U.S. economy that could have a positive effect in the “long term for gasoline prices” as well as for American jobs.

However, Cruz cautioned, “Do not expect this to have an immediate impact on gasoline prices. It will still take years or even decades to build up the infrastructure to produce all of that oil. So that will not happen overnight.”

Cruz’s projection is in line with what many other energy experts expect from the new U.S.-Venezuela oil deal. In an interview with CBS News, David Goldwyn — chairman of the Atlantic Council’s Energy Advisory Group — said it would take “at least two years, if not five to seven years at best, away from seeing that production reach the SPR [Strategic Petroleum Reserve], directly or indirectly.”

As the Iran War continues, America’s SPR has been in a freefall. From January to August of this year, the number of barrels in this stockpile fell from roughly 415,000 to 286,600.

A ‘slippery slope’ to socialism?

While Cruz says he is happy to hear about the potential oil influx, he also noted there are “dangerous aspects” to this new agreement.

For starters, he says he isn’t a fan of making this deal with the “Marxist” interim president of Venezuela, Delcy Rodríguez.

In an X post, Cruz emphasized how this partnership with Venezuela can’t come at the risk of stunting democracy in the Latin American nation, writing, “We cannot let this deal get in the way of bringing a fair and free election to Venezuela.”

On top of that, Cruz says he is concerned about how the federal government is taking yet another equity stake in a company, which he views as a “very bad precedent” that makes him “very uncomfortable” and could put the U.S. on a “slippery slope.”

According to the White House’s press release, the Venezuelan oil company North American Blue Energy Partners (NABEP) is getting 100-year rights to operate 17 oil fields. In return, the U.S. government gets 35% ownership in NABEP with the right to buy 20% of its oil and “the right of first refusal” for the other 80% in emergencies.

About the general practice of the U.S. taking equity stakes in major companies, Cruz said, “At the end of the day, if we end up with the federal government having equity shares — ownership stakes in the biggest companies of America — that is socialism. It is the definition of socialism.” ​

The Washington Post reports that the federal government already holds stakes in 30 private companies, and the Venezuela deal makes it “one of the world’s largest corporate holders of oil.”

Moneywise reached out to Ted Cruz’s office for further comment, but didn’t hear back by the time of publication. ​

Gas prices force Americans to stay put

Americans are paying extra attention to just how much they’re spending on gas nowadays. In fact, analysts at the market research firm Ipsos said they’ve “never seen such a sudden and dramatic shift” in consumers’ perceptions of gas prices.