Trump’s Energy Chief Says Venezuela Could Double Oil Output

U.S. Energy Secretary Chris Wright says that Venezuela's oil output could more than double over the coming years due to the conclusion of new agreements that are bringing Chevron and other international companies back into the country. Output is currently at about 1.1 to 1.2 million barrels per day, a level that is still well below the figure reached in the 1990s. This article looks at the new investment deals altering Venezuela's oil sector, the geopolitical tensions with China and Russia concerning major oilfields, and the way in which increased supply could affect global oil prices. For a full explanation of what this change means for energy markets, please keep reading.

September 2, 2026

Supply Expansion Signals

U.S. Energy Secretary Chris Wright landed in Caracas this week and delivered a bold message: fresh deals being signed by international oil companies are set to more than double Venezuela's crude production within the next few years. Venezuela is currently pumping between 1.1 and 1.2 million barrels a day, a modest recovery since Nicolas Maduro was captured by U.S. forces back in January. Wright's second visit to the country this year signals that Washington is serious about pulling Venezuela back into the global oil conversation.

Investment Reopens Production

Venezuela once produced above 3 million barrels a day in the late 1990s before sanctions, poor management, and years of underinvestment dragged that number down sharply. Now the tide may be turning. Chevron, still the largest American operator in the country, is expected to sign new agreements alongside Italy's Eni, India's ONGC, Colombia's GeoPark, and America's GE Vernova.

These deals follow a separate and much larger arrangement announced by President Trump, giving U.S.-backed firm North American Blue Energy Partners a 100-year lease over 17 oilfields holding roughly 65 billion barrels in reserves. The company, led by businessman Alejandro Betancourt, has drawn some scrutiny given his past run-ins with regulators, though he has never faced charges and denies any wrongdoing. Notably, many of these fields were until recently under Chinese and Russian control, and U.S. officials say Beijing should not be caught off guard by the shift.

Global Supply Rebalances

Wright made it clear that increasing the number of Venezuelan barrels would result in actual downward pressure on oil prices. He also mentioned that gasoline prices in the United States would ease as the refining regulations are relaxed, although he acknowledged that refining capacity is still the main bottleneck affecting prices at the pump. To show just how much oil is currently being moved around the world, Wright pointed out that 17 million barrels went through the Strait of Hormuz on one day this week, which is the highest volume recorded since the Iran conflict disrupted the flows. With Venezuela once again a significant player in the scene, the global supply situation could be quite different in a few years' time.

Venezuela Re-enters Supply Equation

What is unfolding in Caracas this week is more than a round of corporate signings. It reflects a deliberate U.S. strategy to reclaim influence over one of the world's largest untapped oil reserves, while nudging out Chinese and Russian footholds along the way. Whether this ambition actually converts into millions of extra barrels will depend on how fast capital flows in and how smoothly Venezuela's ageing infrastructure can be rebuilt. China has already signalled it expects its own interests to be protected, hinting that this story carries geopolitical weight well beyond energy markets. For now, all eyes remain on Caracas to see how quickly promises turn into production.

Monitor how Venezuela's move back to higher levels of production could affect global oil supply, prices, and the dynamics of the energy market.