US energy chief predicts Venezuela oil output will double

CARACAS: US Energy Secretary Chris Wright has said Venezuela’s crude oil production could more than double over the next few years as American and international energy companies prepare to sign new investment agreements in Caracas.

Wright made the comments during a one-day visit to Venezuela, his second trip to the OPEC member since US forces captured Venezuelan leader Nicolas Maduro in January.

He said agreements expected to be signed this week would bring significant investment into Venezuela’s energy sector and help increase oil production. Greater output, he added, could eventually put downward pressure on global oil prices.

Venezuela once produced more than 3 million barrels of crude per day in the late 1990s. Production later declined sharply because of years of underinvestment, mismanagement and US sanctions.

Output has recently stood at around 1.1 million to 1.2 million barrels per day, with a modest increase reported since Maduro’s capture.

Wright also predicted that US consumers could see lower gasoline prices in the coming weeks. He said the administration’s efforts to ease regulations affecting oil refiners could help increase refining capacity, which he described as a major factor currently influencing gasoline and diesel prices.

Several major international companies are preparing to expand their involvement in Venezuela’s energy sector. Chevron, Eni of Italy, India’s ONGC, Colombia’s GeoPark and US-based GE Vernova are among the companies expected to sign agreements covering energy projects.

The developments follow a separate arrangement announced by President Donald Trump that would give the United States long-term access to a significant portion of Venezuela’s proven oil reserves.

Under the proposed agreement, US-backed North American Blue Energy Partners would receive a 100-year lease covering 17 Venezuelan oilfields. The fields are estimated to contain around 65 billion barrels of oil reserves.

The arrangement has attracted scrutiny because it was negotiated by Washington and Caracas without a competitive bidding process. Questions have also been raised over the background of Venezuelan businessman Alejandro Betancourt, who controls the company. Betancourt has previously denied allegations concerning his past business dealings and has not been charged in relation to them.

A US official defended Betancourt, saying he was not considered a bad actor and noting that some of the fields involved had previously been operated by Russian and Chinese interests.

China, meanwhile, said its economic cooperation with Venezuela was protected under international law and called for its legitimate interests in the country to be safeguarded.