WASHINGTON (TNND) — President Donald Trump is touting a sweeping new agreement with Venezuela that would give the United States majority control of more than 65 billion barrels of the country’s proven oil reserves.

Axios reported the deal on Friday, as Trump described the agreement as a historic expansion of U.S. access to Venezuelan oil, while administration officials have argued that the deal could help strengthen American energy security and eventually bring down fuel prices.

But there’s an important distinction: access to oil reserves in Venezuela is not the same thing as adding those barrels to America’s oil inventory.

The deal involves more than 65 billion barrels

Trump announced Friday that the United States had secured majority control of more than 65 billion barrels of Venezuela’s proven oil reserves through a partnership with private companies.

The agreement involves 17 oil fields, according to Reuters. Most of the reserves are in Venezuela’s Orinoco Belt, with additional fields in the Lake Maracaibo region.

Venezuela has the world’s largest proven oil reserves, but its production has fallen far below its potential after years of underinvestment, mismanagement, infrastructure problems and sanctions.

The U.S., by comparison, had about 46 billion barrels of proven oil reserves, meaning the amount covered by the Venezuela agreement is larger than the entire U.S. proven reserve base.

But that does not mean the United States now has 65 billion barrels of oil sitting in storage.

Those reserves remain in the ground in Venezuela.

Proven reserves are not the same as oil inventory

“Proved reserves” refers to oil that geological and engineering information indicates can reasonably be recovered under existing economic and operating conditions.

That’s different from the amount of crude physically stored in the U.S.

The clearest example is the Strategic Petroleum Reserve, or SPR. The SPR is the federal government’s emergency stockpile of crude oil, stored in underground salt caverns along the Gulf Coast. Its authorized capacity is 714 million barrels.

As of August 21, the SPR held about 289.7 million barrels — its lowest level since 1982. That’s roughly 41% of its authorized capacity.

So while the Venezuela deal gives the United States access to an enormous amount of oil underground in Venezuela, those barrels are not automatically added to the U.S. Strategic Petroleum Reserve or U.S. domestic oil reserves.

Could Venezuelan oil eventually refill the SPR?

Potentially, yes.

Trump said Sunday that oil from Venezuela would be used to replenish the depleted Strategic Petroleum Reserve.

But there is a major timing issue.

The Venezuelan fields need investment and infrastructure improvements before production can be substantially increased. Reuters reported that exhausting the recoverable reserves in the fields could take more than 25 years, while some of the Orinoco Belt projects involve extra-heavy crude that requires additional development and infrastructure.

The Washington Post also reported that several of the fields lack infrastructure or transportation access, while others have suffered from years of neglect and theft of equipment.

That means this is better understood as a potential long-term source of additional oil, rather than an immediate infusion of tens of billions of barrels into the American supply.

What does the Iran conflict have to do with it?

The timing of the agreement is significant. Renewed U.S.-Iran fighting has increased concerns about global oil supplies, particularly around the Strait of Hormuz, a critical shipping route for global energy.

Oil prices jumped more than 2% Monday after the United States and Iran resumed military attacks. Brent crude rose above $90 a barrel, while West Texas Intermediate also climbed.

That makes energy security a more immediate concern for the United States and other oil-consuming countries.

But the Venezuelan agreement isn’t an instant solution to that problem.

Analysts cited by The National said the market was responding much more strongly to the immediate risk around the Strait of Hormuz than to Venezuelan oil that still requires investment, infrastructure and time before it can reach the market in larger quantities.

What does this mean for gas prices?

The Trump administration has argued that increased Venezuelan production could eventually help lower U.S. gasoline prices.

But there is no guarantee of an immediate drop at the pump.

The fields covered by the agreement need significant investment to increase production, and Venezuelan crude is generally heavier and can require specialized refining capacity.

Reuters reported that experts questioned whether the deal could lower gasoline prices in the short term because developing the infrastructure needed to produce, transport and refine Venezuelan crude could take years.