Venezuela Oil Output Could More Than Double in Coming Years
Venezuela's crude oil production could more than double over the next several years as new investment agreements bring additional capital and technology into the country's energy sector, according to U.S. Energy Secretary Chris Wright.
- Venezuela currently produces about 1.1 million to 1.2 million barrels of crude oil per day.
- Wright said production could more than double over the next several years.
- New agreements are expected from U.S. and international energy companies.
- A long-term lease covers 17 Venezuelan oilfields with estimated combined reserves of around 65 billion barrels.
- Chevron, Eni, ONGC, GeoPark and GE Vernova are among the companies preparing new agreements.
MONTREAL (Oil Monster): Venezuela's crude oil production could more than double over the next several years as new investment agreements bring additional capital and technology into the country's energy sector, according to U.S. Energy Secretary Chris Wright.
Speaking after arriving in Caracas on a one-day visit, Wright said agreements expected to be signed by U.S. and international energy companies could significantly expand Venezuela's available oil supply.
The country currently produces about 1.1 million to 1.2 million barrels per day (bpd), far below its peak of more than 3 million bpd recorded in the late 1990s.
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Why Venezuela's Oil Production Could Rise
Venezuela's production has witnessed a decline over the long term, mainly due to inadequate investment, poor management and U.S. sanctions, Wright said.
U.S. gasoline prices are expected to ease during the coming weeks as a result of government measures aimed at improving refinery operations, he added.
Which Energy Companies Are Preparing New Agreements
Several major energy companies, including Chevron, Italy's Eni, India's ONGC, Colombia's GeoPark and GE Vernova of the United States, are about to sign new agreements.
The agreements follow the granting of a long-term lease covering 17 Venezuelan oilfields, which have estimated combined reserves of around 65 billion barrels.
What Wright Said About Strait of Hormuz Oil Flows
Wright also noted that oil flows through the Strait of Hormuz reached their highest level since the conflict disrupted shipments.
Venezuela Oil Production Questions and Answers
How much oil is Venezuela currently producing?
Venezuela currently produces about 1.1 million to 1.2 million barrels per day.
How much could Venezuela's oil production increase?
U.S. Energy Secretary Chris Wright said production could more than double over the next several years.
Why has Venezuela's oil production declined?
Wright attributed the long-term decline mainly to inadequate investment, poor management and U.S. sanctions.
Which companies are preparing new Venezuela energy agreements?
Chevron, Eni, ONGC, GeoPark and GE Vernova are among the companies preparing new agreements.
How much oil is associated with the 17-field lease?
The 17 Venezuelan oilfields have estimated combined reserves of around 65 billion barrels.