Venezuela’s crude oil production rate could potentially double over the next few years as the country prepares to sign new agreements with U.S. and other foreign energy companies, according to U.S. Energy Secretary Chris Wright. Wright made the comments during a one-day visit to Caracas, where he discussed the potential impact of the planned deals.
“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.
Venezuelan Output Remains Below Historical Peak
Venezuela previously reached a peak oil production rate of about 3 million barrels daily, although that level was recorded in the late 1990s. Since that period, production has fallen considerably amid U.S. sanctions and underinvestment. Oil production has declined to 1.25 million barrels dailyin 2026, while exports are currently running slightly above 1 million barrels daily. The biggest portion of those exports is being supplied to U.S. refiners along the Gulf Coast.
U.S. Ownership Deal Covers 17 Fields
The potential expansion follows news last week that the U.S. was negotiating a direct ownership stake in Venezuela’s high-yield field, which contains combined reserves of 90 billion barrels of crude. At the end of last week, President Trump called the deal “historic”, with the agreement covering 17 fields and carrying target production of 1.5 million barrels per day.
A U.S.-based company owned by a Venezuelan tycoon will be involved in the arrangement. That company has already been granted 14 oil deals by the Venezuelan government. Under the proposed structure, the U.S. government will receive rights to a 35% stake in the company, along with access to 20% of North American Blue Energy Partners’ production at cost.
The U.S. federal government will also have the right of first refusal for the purchase of the other 80% of NABEP’s production from Venezuelan fields. Analysts have pointed to the scale of investment required to deliver such a significant increase in Venezuelan crude oil production.
