U.S. Energy Secretary Says Venezuela Could More Than Double Oil Production
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…
U.S. Energy Secretary Chris Wright believes Venezuela's crude oil production could nearly double in the coming years, according to a report by Reuters. Wright made this statement during a visit to Caracas, where he discussed several investment deals set to be signed with U.S. and foreign energy companies. The U.S. government is currently negotiating a direct ownership stake in a high-yield field containing 90 billion barrels of crude.
The deal, which includes 17 fields with a target production of 1.5 million barrels per day, involves a U.S.-based company owned by a Venezuelan tycoon. In exchange for the 35% stake and 20% of production at cost, the U.S. government will have the right of first refusal for the remaining 80% of production from Venezuelan fields. Analysts estimate that such a significant increase in production would require substantial investments, potentially totaling $180 billion over the next decade.
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