US Energy Secretary Wright: Venezuela Oil Output Could Double via Historic Deals

Key Facts

In a move reflecting a significant shift in US energy policy toward Latin America, Energy Secretary Chris Wright stated that Venezuela's crude oil production could double in the coming years. According to reports, these projections are based on new deals with US and foreign energy companies, as the federal government negotiates a direct ownership stake in Venezuelan fields containing reserves of up to 90 billion barrels. This strategy aims to bolster global supply and exert downward pressure on energy prices.

The details of the negotiations indicate that the US government will secure rights to a 35% stake in NABEP, including the right of first refusal for 80% of its production. Per analyst data, Venezuela's current production stands at approximately 1.25 million barrels per day, while the deal characterized by President Donald Trump as "historic" covers 17 oil fields. Market data suggests that while increased Venezuelan crude is bearish for long-term prices, Secretary Wright noted that refining capacity remains a primary bottleneck for gasoline and diesel costs.

Looking ahead, the long-term outlook for oil prices remains bearish as these supply projections materialize, though specific instrument prices were unavailable at the close of September 2, 2026. Traders should monitor geopolitical developments regarding the execution of these corporate deals. The upcoming economic calendar does not currently list immediate high-impact catalysts directly linked to Venezuelan energy production for the next session.