US Energy Secretary Projects Venezuela’s Oil Output to More Than Double in Coming Years

**U.S. Energy Secretary Forecasts Surge in Venezuelan Oil Production Following New Energy Deals**

**CARACAS** — U.S. Energy Secretary Chris Wright announced on Tuesday that newly brokered agreements between Venezuela and international energy companies are set to more than double the nation’s crude oil production over the next few years.

Wright made the remarks upon arriving in Caracas for a one-day diplomatic visit. This marks his second trip to the OPEC-founding nation since U.S. forces captured Venezuelan leader Nicolas Maduro in January.

### Production Rebound and Refining Bottlenecks

Venezuela’s oil output peaked at over 3 million barrels per day (bpd) in the late 1990s but suffered a severe decline due to years of underinvestment, political mismanagement, and U.S. sanctions. Recently, production has hovered between 1.1 million and 1.2 million bpd, showing a slight recovery following Maduro’s capture.

While Wright anticipated that the incoming investments would significantly boost global oil supply and pressure crude prices downward, he noted that U.S. consumers should see retail gasoline prices drop more immediately. He attributed this expected decline to recent regulatory relief for domestic refiners implemented by the Trump administration.

“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 told reporters. He was accompanied on the trip by officials from the U.S. State and Treasury Departments.

A coalition of major energy firms—including Chevron (the leading U.S. producer in Venezuela), Italy’s Eni, India’s ONGC, Colombia’s GeoPark, and U.S.-based GE Vernova—are scheduled to sign new project agreements in Caracas this week.

### The NABEP Deal and Associated Controversy

Wright’s visit follows President Donald Trump’s recent announcement of a bilateral arrangement granting the United States long-term access to approximately 20% of Venezuela’s proven oil reserves, which rank among the largest globally.

Under this arrangement, North American Blue Energy Partners (NABEP), a private, U.S.-backed oil firm, will secure a 100-year lease to operate 17 Venezuelan oilfields containing an estimated 65 billion barrels of oil reserves.

The non-competitive selection of NABEP—which is controlled by Venezuelan businessman Alejandro Betancourt—has drawn scrutiny. Betancourt has previously been investigated, though never charged, by U.S. and European authorities regarding past business dealings in Venezuela. While some prospective investors have raised concerns over the arrangement, NABEP defended Betancourt, highlighting his 15-year track record of success in the Venezuelan energy sector. Betancourt has consistently denied any wrongdoing.

### Geopolitical Shifts

A senior U.S. official traveling on Wright’s plane defended the selection, stating that Betancourt is “not a bad actor.” The official pointed out that many of the oilfields included in the NABEP lease were previously operated by Chinese and Russian state entities. Furthermore, the official noted that Betancourt has imported oil rigs from Texas, a move expected to generate employment in both the U.S. and Venezuela.

Addressing potential geopolitical friction, the official dismissed concerns that Beijing would react negatively to the U.S. securing these assets. “Obviously we maintain a very robust bilateral relationship with China and I don’t think that… this is anything they weren’t expecting,” the official said.

### Global Energy Flows

In a update on broader global energy markets, Secretary Wright also reported that 17 million barrels of oil transited the Strait of Hormuz on Monday. This represents the highest daily volume of crude to pass through the strategic waterway since shipping traffic was disrupted by the U.S.-Israeli conflict with Iran.