US Energy Secretary Predicts Venezuela Oil Output to More Than Double

US Energy Secretary Chris Wright has announced that oil companies from the US and other countries are set to sign deals in Caracas, Venezuela, with the aim of boosting investment and lowering prices. These agreements will reportedly lead to a more than doubling of crude production in the next few years.

Venezuela's oil production peaked above 3 million barrels per day in the late 1990s but has plummeted due to lack of investment, mismanagement, and US sanctions. In recent months, it has been around 1.1-1.2 million bpd, rising slightly since Maduro was captured.

Wright attributed the expected increase in oil production to the massive growth in available oil production resulting from the investment in these deals. However, he noted that refining capacity is still a major issue, and US gasoline prices should fall in coming weeks due to steps taken by the Trump administration to ease regulations on refiners.

Companies such as Chevron, Eni, ONGC, GeoPark, and GE Vernova are set to sign agreements on energy projects in Venezuela this week. The deals also include a 100-year lease for 17 oilfields controlled by North American Blue Energy Partners (NABEP), which hold some 65 billion barrels of oil reserves.