Energy secretary: U.S. companies reengaging in Venezuela as production rises, law reform underway
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Summary
Secretary Chris Wright said U.S. and international companies are expanding work in Venezuela after hydrocarbon law reforms, citing roughly 250,000 barrels a day of incremental Venezuelan production and ongoing diplomatic engagement.
Secretary Chris Wright said Venezuela is returning to the market and that U.S. refiners and oil companies are reengaging after recent legal reforms.
"So when most of the refineries were built in The United States ... the largest oil exporter in the world was Venezuela," Wright said, noting U.S. refineries are well‑tuned to heavier Venezuelan crude and that "250,000 barrels a day" of Venezuelan oil is now being refined in the U.S. He described that jump in output as equivalent to a meaningful share of recent global demand growth.
On investor confidence, Wright pointed to reforms enacted on "January 3" to Venezuela's hydrocarbon law and said U.S. officials are "continuing to communicate with the interim president" to improve the investment environment. He said several American and European oil companies are expanding activity and that this trend could benefit regional economies, citing comments from Trinidad and Tobago about reduced crime after actions to curtail seaborne drugs.
Wright framed reengagement as an economic and humanitarian opportunity: "Great for America, great for energy prices in America, great for the Western Hemisphere, and, of course, phenomenal for the people of Venezuela," he said.
The interview did not provide contract details, specific company names beyond a general reference to Chevron, or timelines for particular projects; Wright said the government is in dialogue and expects further increases in Venezuelan output over the year.
