Wright Predicts Venezuela Oil Output to More Than Double in Next Few Years
US Energy Secretary Chris Wright has predicted that Venezuela's oil output will more than double in the next few years, thanks to deals signed between US and other countries' oil companies. Wright made this statement after landing in Venezuela for a one-day trip, his second since the US seized control of the country from President Nicolas Maduro in January.
Venezuela's oil production peaked at 3 million barrels per day in the late 1990s but plummeted due to lack of investment, mismanagement, and US sanctions. The current output is around 1.1-1.2 million bpd, which has been rising since Maduro was captured.
The deals signed this week by Chevron, Eni, ONGC, GeoPark, and GE Vernova are expected to massively grow available oil production, putting downward pressure on oil prices. However, Wright noted that the biggest kink in gasoline and diesel prices is refining capacity.