Venezuela's Oil Production Set to Surge with New US Deals

US Energy Secretary Chris Wright announced on Tuesday that Venezuela's oil production is expected to more than double in the next few years due to new deals between US and Venezuelan companies.

The agreements, set to be signed this week, will involve major players such as Chevron and Eni, among others. According to Wright, these investments will 'massively grow available oil production,' putting downward pressure on oil prices.

Venezuela's oil output has been around 1.1 million barrels per day in recent months, a significant increase since the capture of President Nicolas Maduro by US forces in January. However, this still pales in comparison to its peak of over 3 million barrels per day in the late 1990s.

The deal also includes a separate agreement between the US and Venezuela for North American Blue Energy Partners (NABEP) to receive a 100-year lease on 17 oilfields, holding approximately 65 billion barrels of oil reserves. This has raised concerns among some investors due to NABEP's connections with Venezuelan businessman Alejandro Betancourt, who has been investigated by US and European authorities.