Energy Secretary Chris Wright announced Wednesday that he is actively working with Venezuelan officials and U.S. oil companies to explore conditions for expanding Venezuela’s oil production. Speaking at the Goldman Sachs Energy, CleanTech and Utilities Conference in Florida, Wright said the goal is to stabilize production, prevent the industry’s collapse, and eventually increase output.
Currently, Venezuela’s oil sector operates under strict U.S. sanctions, including a full export blockade. While Wright did not directly confirm any easing of these sanctions, his remarks suggested that cooperation with the Venezuelan government could create opportunities for U.S. companies to re-engage. Chevron is the only U.S. oil firm currently operating in Venezuela, while Exxon Mobil and ConocoPhillips exited after nationalization in 2007.
Wright indicated that expanded Venezuelan production could add “several hundred thousand barrels a day,” though no timeline or responsible entities were specified. He emphasized that investment decisions would depend on market conditions and the ability to establish a stable operating environment.
In a related move, President Trump stated that Venezuela’s interim authorities will release 30 to 50 million barrels of high-quality crude to the U.S., much of which is currently in onshore and offshore storage. Wright said the U.S. would facilitate sales and ensure funds benefit the Venezuelan people. U.S. oil executives are scheduled to meet with Trump and Wright later this week.
Crude prices responded, with U.S. WTI oil falling about 1% Wednesday morning.