Commodities
Home›Commodities›Energy›Venezuela could double oil output as new foreign deals…
Venezuela could double oil output as new foreign deals are planned
U.S. Energy Secretary Chris Wright said fresh investment would raise supply, while refining capacity is cited as a near term constraint for gasoline and diesel prices.
Venezuela’s crude oil production rate could double in the next few years as new deals are set to be signed with U.S. and other foreign energy companies, U.S. Energy Secretary Chris Wright said during a visit to Caracas, according to OilPrice citing Reuters.
Wright said the investment would significantly expand available oil production and put downward pressure on oil prices, but he pointed to refining capacity as the main near term constraint affecting gasoline and diesel prices.
The outlet said Venezuela’s peak oil output was about 3 million barrels per day in the late 1990s, but production has since fallen to about 1.25 million barrels per day this year amid U.S. sanctions and underinvestment.
Oil exports are running slightly above 1 million barrels per day, with the largest share going to U.S. Gulf Coast refiners, OilPrice added, noting that the U.S. federal government is negotiating a direct ownership stake in a high yield field tied to combined reserves of 90 billion barrels of crude.
Latest closeWTI crude $90.79 ▲5.9%|Gasoline (RBOB) $3.158 ▼8.1%