Venezuelan Oil Production Could Rise 30%, Says U.S. Energy Secretary
In the 1970s, the country produced about 3.5 million barrels per day—roughly 7% of global supply—but today it accounts for just 1%.
Quick overview
- U.S. Energy Secretary Chris Wright expressed optimism that Venezuela's oil production could rise by 30% in the near future.
- Venezuela's oil output has significantly declined due to underinvestment and sanctions, dropping from 3.5 million barrels per day in the 1970s to around 900,000 today.
- Analysts remain skeptical about a quick recovery due to the need for substantial investments in aging infrastructure and the high costs of developing Venezuela's heavy crude reserves.
- Former President Donald Trump highlighted a vision for Venezuela to earn more from oil in the next six months than in the past two decades, under a $100 billion plan.
Chris Wright voiced optimism about Venezuela’s oil production outlook at the World Economic Forum.
U.S. Energy Secretary Chris Wright told oil industry executives that Venezuela’s crude output could increase by as much as 30% from current levels of around 900,000 barrels per day over the short to medium term. His remarks followed a meeting with three oil executives on the sidelines of the World Economic Forum in Davos, Switzerland.
Venezuela’s oil production has collapsed in recent years due to chronic underinvestment and international sanctions. In the 1970s, the country produced about 3.5 million barrels per day—roughly 7% of global supply—but today it accounts for just 1% of worldwide output.
Against this backdrop, analysts and oil executives remain skeptical about a rapid recovery of Venezuela’s oil sector, noting that its aging infrastructure would require multibillion-dollar investments to be brought back online. Venezuela’s oil reserves are also among the most expensive in the world to develop, as its crude is extremely heavy and viscous, requiring specialized equipment for extraction, transportation, and refining into usable fuels.
The U.S. Oil Strategy in Venezuela
Following the U.S. military intervention in Venezuela that led to the capture of President Nicolás Maduro, Washington’s primary objective has been to boost crude production in the Latin American country, which holds the world’s largest proven oil reserves.
Speaking at the World Economic Forum, Donald Trump said Venezuela will earn more from oil production over the next six months than it has in the past 20 years. His optimistic vision includes long-term control of Venezuela’s oil resources under a $100 billion plan. So far, his administration has extracted 50 million barrels of oil and is selling part of that output on the open market, the Republican president said on Tuesday.
Earlier this month, Trump met with more than 15 oil executives at the White House. During that meeting, Exxon CEO Darren Woods told Trump that Venezuela would need to change its legal framework before becoming an attractive investment opportunity.
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