Wright's Venezuela Deals Could Double Crude Production
US Energy Secretary Chris Wright arrived in Venezuela on Tuesday and announced that deals signed by US oil companies will lead to a significant increase in crude production. Wright stated that this will result in downward pressure on oil prices, but cautioned that refining capacity is still a concern. The agreements are expected to be finalized tomorrow in Caracas.
Wright's visit comes after the Trump administration seized control of Venezuela from President Nicolas Maduro in January. Since then, Venezuelan oil production has risen slightly to around 1.1-1.2 million barrels per day, up from a peak of 3 million barrels per day in the late 1990s.
The US Energy Secretary emphasized that investment in these deals will 'massively grow available oil production.' He also mentioned that the recent deal for North American Blue Energy Partners (NABEP) to receive a 100-year lease for 17 oilfields in Venezuela, holding some 65 billion barrels of oil reserves, has raised flags among some oil companies. However, Wright defended NABEP's CEO Alejandro Betancourt, stating that he is 'not a bad actor.'