CARACAS: U.S. Energy Secretary Chris Wright said on Tuesday after landing in Venezuela that deals that oil companies from the U.S. and other countries sign tomorrow in Caracas will lead to a more than doubling of crude production in the next few years.
Wright is on a one-day trip to the founding OPEC member, his second since U.S. forces seized Venezuela's leader Nicolas Maduro in January.
Venezuelan oil production peaked above 3 million barrels per day in the late 1990s but plummeted after that on a lack of investment, mismanagement and U.S. sanctions. In recent months it has been around 1.1 million to 1.2 million bpd, rising slightly since Maduro was captured.
Wright said U.S. gasoline prices should fall in coming weeks due to steps the Trump administration has taken to ease regulations on refiners.
"The investment in these deals will massively grow available oil production, which will give downward pressure on oil prices, but the biggest kink right now in gasoline and diesel prices is refining capacity," Wright told reporters after landing.
