Venezuela's Oil Output Remains Elusive Despite Lucrative Deals

Venezuela's oil production has been on a decline since socialist regimes nationalized foreign-held assets and stacked state-owned drillers with political loyalists, leading to an output of just 1.1 million barrels per day as of July.

To restore the three million-barrel mark seen in roughly 15 years ago, major injections of foreign cash are required, but it's unclear if overseas drillers can make a profit in the South American nation.

Energy investment banker Dan Pickering warns that turning new agreements into actual barrels of crude is a long-term process and not likely to supply in the near term.

'It's going to have to be a win for the companies that go down there and spend money, and it's not clear yet how much of a win that's going to be,' Pickering said. 'At the risk of sounding un-American or something, I think there's a lot of smoke and mirrors around Venezuela right now.'