U.S. Energy Secretary in Venezuela Signals Broad Oil Reengagement, Forecasts Chevron Growth

U.S. Energy Secretary Chris Wright said during a televised interview in Venezuela that his recent meetings with interim President Delsey Rodriguez have created conditions for renewed U.S. oil-sector engagement and investor interest.

Wright said he and Rodriguez have ‘‘had hours of discussions both in the palace and going around’’ and described Rodriguez as ‘‘quite enthusiastic’’ about opening Venezuela to foreign investment. He announced the United States had ‘‘already released a general license’’ allowing American and international oil companies to meet Venezuelan officials and investigate possible deals, and said further licenses to permit imports of parts and services would be issued ‘‘soon’’ to modernize large facilities.

The secretary highlighted oil sales as Washington’s principal leverage in Venezuela, saying, ‘‘The big leverage we have is we're selling the oil that's produced and exported from Venezuela’’ and asserting the U.S. is receiving ‘‘more than 50% higher dollars per barrel’’ for that product. He said the administration can direct those proceeds to Venezuelan authorities and people while retaining discretion over that direction.

Wright identified Chevron as ‘‘in this country for 100 years’’ and said the company ‘‘is being enabled to massively grow’’ its Venezuelan operations. He forecast ‘‘a pretty good clip in rising Chevron production over the next 18 to 24 months.’’ He added that other companies would be able to expand as licenses and deal terms emerge.

On companies that previously lost assets in Venezuela, Wright said Venezuela and firms such as ConocoPhillips are in ‘‘active discussions’’ and floated ‘‘creative deals where debt will be traded for assets’’ as one path to recompense and to entice return.

Wright also addressed geopolitical competition, saying China, Russia and Iran have had ‘‘a huge presence’’ in Venezuela and asserting that ‘‘Hezbollah and Hamas, North American headquarters are here in Venezuela.’’ He described removing adversarial influence as a priority for the hemisphere.

Asked whether the U.S. could guarantee security for investors on the ground, Wright replied, ‘‘No. … This is not sovereign U.S. territory,’’ saying businesses must make risk–reward calculations and that the U.S. would not make security guarantees.

On political transition, Wright said lasting change requires ‘‘free and fair democratic elections’’ and secure property rights, calling elections ‘‘the big transformation that has to happen’’ even as he said progress toward that goal is under way.

The interview closed with the program identifying Wright as the highest-ranking U.S. official to visit Venezuela since the capture of Nicolás Maduro earlier this year.

Note: Quotes and claims above are attributed to Chris Wright as spoken in the recorded interview; the secretary made several factual assertions (for example, about the presence of foreign actors in Venezuela and specific dollar or production figures) that the interview did not evidence with supporting documents during the broadcast.