Venezuela Oil Output to Nearly Double as US Companies Invest

US Energy Secretary Chris Wright is optimistic about Venezuela's oil output, which he expects to more than double in the next few years. He made this statement after landing in Caracas on a one-day trip, where US oil companies are set to sign deals with Venezuelan counterparts.

The agreements, which include Chevron and Eni, will invest in energy projects and bring massive growth to available oil production, putting downward pressure on oil prices. Wright attributed the current refining capacity constraints as the main reason for high gasoline and diesel prices.

One of the key deals is with North American Blue Energy Partners (NABEP), a US-backed firm that will receive a 100-year lease for 17 oilfields in Venezuela, holding some 65 billion barrels of oil reserves. The deal has raised flags among some oil companies due to allegations against NABEP's controlling businessman Alejandro Betancourt.

However, Wright defended Betancourt as 'not a bad actor', citing his track record and the fact that many of the oilfields were previously controlled by China and Russia. He also downplayed concerns about China's reaction, stating that it was expected given their robust bilateral relationship.