Energy Secretary Wright states that the United States is collaborating with Venezuelan partners and oil firms to boost output

U.S. and Venezuela Discuss Potential Expansion of Oil Production

During the second day of the 6th Partnership for Transatlantic Energy Cooperation in Athens in 2025, Energy Secretary Chris Wright addressed ongoing efforts to collaborate with both Venezuelan officials and American oil companies to assess the possibilities for increasing oil output.

Speaking at the Goldman Sachs Energy, CleanTech and Utilities Conference in Florida, Wright stated, "We are committed to restoring oil flows." He explained that as discussions with the Venezuelan government advance, the U.S. aims to facilitate the import of essential equipment and services to stabilize the sector, prevent further decline, and ultimately boost production as soon as possible.

Currently, Venezuela’s oil sector and broader economy are subject to stringent U.S. sanctions, including a comprehensive ban on oil exports. Following Wright’s remarks, a White House spokesperson informed NBC News that the administration intends to partially ease some restrictions, allowing Venezuelan crude and related products to be traded internationally.

Wright also noted that, in the long term, the Trump administration seeks to create an environment where major U.S. oil companies—whether they have previously operated in Venezuela or are new entrants—would be encouraged to invest and participate in the country’s energy industry.

Exxon Mobil and ConocoPhillips withdrew from Venezuela in 2007 after the government nationalized its energy assets. Presently, Chevron is the only American oil company still active in the country, operating under a limited license granted by the Trump administration.

Since the U.S. detained President Nicolás Maduro and President Trump began outlining his vision for Venezuela’s oil future, Exxon Mobil, Chevron, and ConocoPhillips have not publicly commented on the possibility of expanding or resuming operations in Venezuela.

Wright suggested that, in the near to medium term, Venezuela could potentially increase its oil production by several hundred thousand barrels per day, though he did not specify a timeline or which organizations would be involved in this expansion.

Investment and Market Dynamics

Neil Mehta, head of natural resources research at Goldman Sachs, questioned Wright about the significance of ensuring companies receive adequate returns on investments made in Venezuela. Wright responded that market conditions would ultimately determine whether investing in Venezuela is attractive, stating, "If we can implement the necessary changes, investment will follow; if not, capital will go elsewhere."

Engagement with Industry Stakeholders

Wright shared that he has been in discussions with companies that have operated in Venezuela, are currently present, or are interested in entering the market. He is seeking to understand what requirements would prompt these firms to commit substantial investments in developing oil fields and infrastructure.

He did not indicate whether any companies have agreed to return or, in Chevron’s case, to expand their activities.

According to an administration official, executives from Exxon, Chevron, and ConocoPhillips are scheduled to meet with President Trump at the White House on Friday, with Wright also attending.

Plans for Venezuelan Oil Exports

On Tuesday night, President Trump announced on Truth Social that Venezuela’s interim authorities would transfer between 30 and 50 million barrels of high-quality, sanctioned oil to the United States. He directed Energy Secretary Wright to implement this plan immediately.

Wright clarified that this oil refers to crude stored both onshore and in offshore floating storage facilities. Due to what Trump described as a "blockade" on Venezuela’s oil sector prior to Maduro’s capture, the country’s onshore storage tanks have nearly reached capacity, as reported by Bloomberg News.

Additionally, data from Kpler cited by Bloomberg indicates that approximately 22 million barrels of Venezuelan oil are currently held in offshore tankers.

At the Goldman Sachs conference, Wright stated that the U.S. intends to market Venezuelan crude. Once the current backlog is addressed, he said, the U.S. will continue to sell Venezuelan oil on the global market for the foreseeable future.

He also mentioned that the U.S. will provide the necessary diluents to make Venezuela’s heavy, sour crude easier to transport. Oil sales will be managed by the U.S. government, with proceeds deposited into government-controlled accounts, and funds will then be directed back to Venezuela to support its citizens.

Market Impact

On Wednesday morning, the price of West Texas Intermediate (WTI) crude oil had declined by about 1%.