U.S. expects sharp rise in Venezuelan oil output after new deals

U.S. Energy Secretary Chris Wright insisted on Wednesday, in an interview with CNBC in Caracas, that Venezuela's crude production will rise 50% by 2027, according to the outlet Infobae. Wright said daily output currently exceeds 1.2 million barrels and projected that it will surpass 2 million barrels per day by the end of this decade, driven by recent agreements with U.S. oil companies.

Separately, the Brazilian newspaper Folha de S.Paulo reported that U.S. oil company Chevron announced agreements to double its production in the South American country over the next five years. At the same time, the White House announced an agreement that would give a joint venture linked to North American Blue Energy Partners (NABEP) access to exploit 20% of Venezuela's proven reserves for at least 25 years, according to reports published by El Nacional and BBC Mundo.

These moves in the energy sector come against a backdrop in which, according to data published by El Nacional based on records from the U.S. Department of Energy, the U.S. Strategic Petroleum Reserve stood at 298.7 million barrels, equivalent to 42% of its estimated total capacity of 714 million barrels, underscoring the pressure to secure external sources of supply. Economic analysts warn that meeting the extraction targets set by Washington will face major challenges due to the cumulative deterioration of local infrastructure and the need for massive injections of capital.

The agreement has drawn criticism over the priority given to foreign economic interests over domestic political processes. Nevertheless, Wright defended the participation of private operators and said the operations will be subject to strict oversight under U.S. laws and contracts, despite legal challenges involving some of the businesspeople taking part.