Venezuela's crude oil production rate could double in the next few years thanks to new deals set to be signed with U.S. and other foreign energy companies, U.S. Energy Secretary Chris Wright has said.
"The investment in these deals will massively grow available oil production, which will give downward pressure on oil prices, but the biggest kink right now in gasoline and diesel prices is refining capacity," Wright said during a one-day visit to Caracas.
Venezuela's peak oil production rate was about 3 million barrels daily, but that was in the late 1990s. Since then, amid U.S. sanctions and underinvestment, production has dropped to 1.25 million barrels daily this year.
Last week, news broke that the U.S. federal government was negotiating a direct ownership stake in the country’s high-yield field that contains combined reserves of 90 billion barrels of crude. Analysts have noted that such a major boost in Venezuelan crude oil production would require substantial investments, with Rystad Energy putting the total at some $180 billion, which would need to be invested over the next ten years.
