Washington: The US is aiming to increase Venezuela's oil production to 1.5 million barrels per day in the short term, Interior Secretary Doug Burgum announced on Monday. This move comes as Washington looks for additional oil supplies following a June agreement with Iran that temporarily lifted restrictions on Iranian oil sales.
According to Anadolu Agency, Burgum disclosed to US broadcaster Fox News that American companies would be instrumental in rapidly boosting Venezuela's oil output. He emphasized Venezuela's strategic importance as an energy partner due to its vast oil reserves and its location, which is unaffected by the ongoing Middle Eastern conflicts disrupting the Strait of Hormuz-a crucial energy passageway.
Burgum highlighted that increasing Venezuelan oil production could mitigate global energy supply disruptions caused by Middle Eastern conflicts and bolster US energy security. This effort is part of a broader strategy to expand investment in Venezuela's oil industry and tap into the country's extensive reserves.
The cooperation between Washington and Caracas includes 17 strategic oil fields and aims to attract over $100 billion in investments, as reported by Venezuelan authorities. This development follows a shift in US-Venezuela ties after US forces captured Venezuelan leader Nicolas Maduro and his wife, Cilia Flores, in January, leading to their detention in New York on charges of drug trafficking, money laundering, and corruption.
Chevron has announced plans to invest more than $7 billion over the next five years to boost its Venezuelan operations' output to roughly 600,000 barrels per day. Additionally, Italian energy company Eni has signed a deal to develop the Junin 5 oil field in the Orinoco Belt.
Despite holding the world's largest proven oil reserves, Venezuela's production has significantly declined over the years. Burgum stated that the US aims to revitalize Venezuela's oil industry and increase the flow of Venezuelan crude to international markets.
The Trump administration has also portrayed the expansion of Venezuela's oil sector as a means to enhance US energy security, including the potential to replenish the Strategic Petroleum Reserve at lower prices. "President Trump, the deal that was just cut recently, will allow us to refill the strategic petroleum reserve perhaps as low as $30 or $40 a barrel," Burgum added.
A newly announced agreement between Washington and Caracas grants US companies greater access to Venezuelan oil resources, potentially reshaping the country's energy sector and securing additional supplies amid ongoing geopolitical tensions.