Venezuela Oil Output Seen Rising, But Pre-2018 Levels Unlikely

Goldman Sachs believes that Venezuela's crude oil production will increase in the near future, but it is unlikely to reach pre-2018 levels of over 2 million barrels per day. The investment bank cited several key bottlenecks, including degraded infrastructure and an unreliable power grid, as major obstacles to overcome.

Despite these challenges, a number of international energy firms have committed to project expansions in Venezuela, aimed at boosting oil output. Eni, GE Vernova, and Chevron are among the companies that signed agreements on Wednesday, overseen by interim President Delcy Rodriguez and US Energy Secretary Chris Wright. These deals are separate from a recent Caracas-Washington agreement that granted the US access to 17 oilfields.

Venezuela has the world's largest oil reserves, but its current output is only around 1.25 million bpd, down significantly from the over 3 million bpd achieved two decades ago. The country's state-run oil firm PDVSA has struggled with years of mismanagement and underinvestment.