Venezuela Crude Production Set to Surge Amid US Deals
US Energy Secretary Chris Wright arrived in Venezuela yesterday for a one-day trip, marking his second visit since US forces seized the country's leader Nicolas Maduro in January. Wright said deals signed by oil companies from the US and other countries tomorrow in Caracas will lead to a more than doubling of crude production in the next few years.
Venezuelan oil production peaked above 3 million barrels per day in the late 1990s but plummeted after that 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's capture.
The Energy Secretary emphasized that U.S. gasoline prices should fall in the coming weeks due to steps taken by the Trump administration to ease regulations on refiners. He attributed the biggest kink in gasoline and diesel prices to refining capacity.