US Energy Secretary Chris Wright, speaking from Caracas, Venezuela, discussed plans to significantly increase Venezuela's oil production. He stated that new deals with US and international oil companies are expected to more than double the country's crude output in the next few years. Historically, Venezuela's production peaked above 3 million barrels per day in the late 1990s but had fallen to around 1.1 million to 1.2 million bpd recently. Wright predicted that production would reach over 1.5 million bpd by the first half of next year and exceed 2 million bpd by the end of the decade, attributing this growth to new investments and increased confidence for private businesses under US oversight.
Several key players are involved in these agreements. Chevron, the largest American oil producer in Venezuela, plans to invest over $7 billion through its joint ventures to double its crude output to about 600,000 bpd over the next five years. Other companies on track to sign agreements include Italy's Eni, India's ONGC, Colombia's GeoPark, and the US' GE Vernova. Additionally, a separate deal was announced where US-backed North American Blue Energy Partners (NABEP) would receive a 100-year lease for 17 oilfields in Venezuela, holding some 65 billion barrels of oil reserves.
Wright emphasized that the US government will not be operating or producing these reserves directly but rather partnering to facilitate development and increase confidence for private companies. He noted that the growth in Venezuelan oil production will put downward pressure on global oil prices, which could lead to lower US gasoline prices. He also mentioned that 17 million barrels of oil transited the Strait of Hormuz on Monday, the highest level since the US-Israeli war on Iran reduced flows.
He further explained that this initiative is part of President Trump's broader agenda to restore peaceful and prosperous relations in the Americas. While the US government will benefit from discounted oil and access to reserves, the focus is on business-driven progress. The goal is to leverage Venezuela's vast reserves, which represent 12% to 15% of global oil reserves but currently account for just over 1% of global production, to meet the world's increasing energy demands.
