Venezuela Oil Output Sees Modest Gains Despite Looming Infrastructure Hurdles

Goldman Sachs analysts predict that Venezuela's crude oil production will rise in the coming years, but not to pre-2018 levels. The country's current output is around 1.25 million barrels per day (bpd), significantly lower than its peak of over 3 million bpd two decades ago.

The main obstacles hindering a significant increase in oil production are Venezuela's outdated infrastructure and unreliable power grid, which will be costly and time-consuming to repair or replace.

Despite these challenges, several international energy companies have committed to investing in project expansions to boost oil output in Venezuela. Eni, GE Vernova, and Chevron have signed agreements with the Venezuelan government, overseen by interim President Delcy Rodriguez and U.S. Energy Secretary Chris Wright.