Venezuela’s crude oil production is expected to double in the coming years due to new agreements with U.S. and foreign energy companies, according to U.S. Energy Secretary Chris Wright. These investments could increase oil production significantly, potentially reducing oil prices overall. However, refining capacity remains a major factor affecting gasoline and diesel prices.
Historically, Venezuela’s peak oil output reached around 3 million barrels per day in the late 1990s. Current production has plummeted to 1.25 million barrels daily, with exports slightly above 1 million, primarily to U.S. refiners. Recent reports indicate negotiations are underway for a U.S. stake in Venezuelan oil fields containing reserves of 90 billion barrels. This deal, involving a company partly owned by a Venezuelan tycoon, aims for a target production of 1.5 million barrels per day.
Analysts estimate that revitalizing Venezuela’s oil production could require investments of about $180 billion over the next decade.
