US Vice President J.D. Vance said Thursday that the United States is effectively creating a new 65 billion-barrel oil reserve through its deal with Venezuela.

Axar.az reports that, speaking at a press conference, Vance said American companies would be able to invest in Venezuela’s oil sector and increase production, which he argued would boost global supply and reduce costs for US consumers.

“Well, now we're using, of course, the successful Venezuela operation and some of the friendships and some of the relationships that developed in the wake of that operation to create what is effectively a new 65 billion barrel of oil reserve for the United States of America,” Vance said.

“And the way that that's going to work is that private companies, American companies can go in there, generate a lot of oil revenue. Obviously, that's going to mean world oil markets get only more supplied. That will lower costs for Americans,” he added.

Vance said the arrangement would also generate revenue for Venezuela and allow Americans to receive a share of royalties under a deal negotiated by members of the Trump administration.

“So, it's good for Venezuelans, it's good for anybody who's buying gas, and it's good for the American taxpayer as well. So, it's very much a win-win thing,” he said.

Vance added that the deal would provide greater stability to global energy markets, saying the supply of critical resources “really matters.”