U.S. Energy Secretary Wright, in Caracas Tuesday, said agreements to be signed
there on Wednesday between U.S. and other oil companies will drive Venezuela
crude output to more than double in the coming years. Venezuelan production
peaked at just over 3.0 mln bpd in the late 1990s and has since fallen to
roughly 1.1–1.2 mln bpd. Wright said the investment tied to the deals would
substantially increase volumes available and exert downward pressure on oil
prices. He added that refining capacity is currently the main bottleneck for
gasoline and diesel prices, and that U.S. gasoline prices are expected to
decline in the coming weeks after refinery-regulation relaxations by the Trump
administration.
