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Upcoming energy agreements with American and international firms could more than double Venezuela’s crude oil production over the next few years, according to US Energy Secretary Chris Wright, as Washington moves to revitalize capital inflows into the South American nation's energy infrastructure.

Speaking on Tuesday upon arriving in Caracas for an official one-day visit to finalize new petroleum agreements, Wright emphasized that foreign investment is central to reversing decades of declining output triggered by underinvestment, US sanctions, operational mismanagement, and decaying facilities.

Output Contraction and Recovery Projections

Venezuela, a founding member of OPEC, has seen its production footprint shrink dramatically over the past three decades:

Late 1990s Peak: Surpassed 3 million barrels per day (bpd).

Recent Output: Stagnated between 1.1 million and 1.2 million bpd in recent months.

Projected Target: New foreign joint ventures aim to more than double current production levels, adding substantial fresh volume to international supplies.

Market and Price Implications

Wright indicated that scaling Venezuelan extraction could exert downward pressure on international benchmark crude prices by boosting global supply. However, he cautioned that consumer-level relief on retail fuels may face constraints, highlighting that global and regional refining capacity remains a critical bottleneck dictating pump prices for gasoline and diesel.