US Energy Secretary seeks ‘dramatic increase’ in Venezuela energy output in historic visit
The United States is ready to help boost oil, gas and power production in Venezuela, US Energy Secretary Chris Wright said on Wednesday after talks with interim President and Oil Minister Delcy Rodriguez at the Miraflores presidential palace in Caracas.
Secretary Wright is in Venezuela in the highest-level US visit focused on energy policy in over 30 years. The three-day historic visit comes as the US conducts its initial local assessment of Venezuela’s oil industry and looks to rebuild it after decades of underinvestment, mismanagement and US sanctions, as both countries work towards securing increased investment in Venezuela from oil companies.
“This year, we can drive a dramatic increase in Venezuelan oil production, in Venezuelan natural gas production and Venezuelan electricity production,” Secretary Wright said during a televised briefing after the meeting. That would lead to more job opportunities, higher wages and quality of life for Venezuelans, while providing benefits for the US and the Western Hemisphere, Secretary Wright said.
Venezuela currently produces about 1 million barrels per day of crude, according to Reuters data. The US Energy Secretary’s visit follows the ouster of President Nicolas Maduro in January, a $2 billion oil supply deal agreed to by the US and Venezuela shortly after, and a $100 billion reconstruction plan for the country’s energy industry promoted by US President Donald Trump.
Mitigating business risks for the industry
Secretary Wright told reporters at a roundtable in Caracas that the US was “massively changing the viability of commercial business on the ground in Venezuela, and American interest in it is just overwhelming”.
He said while the US would not provide security or financial guarantees for US energy companies in the South American country, “I believe we’re going to see Venezuela go from a very high-risk nation to do commerce in… and businesses on their own risk-reward evaluation will respond accordingly”.
Secretary Wright also told reporters that the Trump administration is trying to avoid “damaging” deals that Chinese enterprises have done in other countries in the region. He added that China, once Venezuela’s biggest customer, has bought some of the oil previously purchased by the US.
A $100b opportunity
The Trump administration has continued to lift sanctions to allow foreign companies to operate in Venezuela. Last month, Venezuela also enacted a law that opened the nation’s oil sector to private investment.
While the US administration initially said it would only issue special distribution licenses to select energy companies, it has issued a general license to allow oilfield-service companies to work in Venezuela as of this week.
Venezuela holds the world's largest proven oil reserves with more than 303 billion barrels, with Rodriguez's government aiming to increase output by a further 18 % in 2026.
