Venezuela's Oil Production Set to Surge as US Companies Sign Energy Deals
Venezuela's oil production is expected to more than double in the next few years following deals signed by US and other countries' companies, according to US Energy Secretary Chris Wright.
The country's oil output peaked at above 3 million barrels per day in the late 1990s but plummeted due to lack of investment, mismanagement, and US sanctions. Currently, it is around 1.1-1.2 million bpd, slightly increasing since President Maduro was captured.
Wright traveled with officials from the US Departments of Treasury and State and met with companies including Chevron, Eni, ONGC, GeoPark, and GE Vernova to discuss energy projects in Venezuela. These deals are expected to bring massive growth in oil production, putting downward pressure on oil prices.
US gasoline prices should fall in coming weeks due to steps taken by the Trump administration to ease regulations on refiners, according to Wright. He attributed the current refining capacity issue as the biggest kink in gasoline and diesel prices.