Venezuela Oil Production Set to Double Amid New Investment Deals

US Energy Secretary Chris Wright announced that oil deals signed in Caracas will lead to a more than doubling of crude production in Venezuela within the next few years. The country's current output is around 1.1-1.2 million barrels per day, a significant increase since President Maduro was captured. However, Venezuelan oil production peaked above 3 million barrels per day in the late 1990s before plummeting due to lack of investment and mismanagement.

Wright attributed the expected growth in production to investments made through these deals, which will put downward pressure on oil prices. The US Secretary emphasized that refining capacity is currently the biggest constraint on gasoline and diesel prices, not oil supply. To address this issue, the Trump administration has taken steps to ease regulations on refiners, which Wright expects to lead to falling gas prices in the coming weeks.

The agreements being signed include deals with Chevron, Eni, ONGC, GeoPark, and GE Vernova, among others. These companies will work on energy projects in Venezuela, including a 100-year lease for 17 oilfields held by North American Blue Energy Partners (NABEP). The lease covers some 65 billion barrels of oil reserves, which is about a fifth of Venezuela's proven reserves.