US oil producers near deals with Venezuela amid push for production

Sources familiar with the negotiations indicated that US Secretary of State Marco Rubio had engaged with Venezuelan authorities, emphasizing how increased oil revenue could aid the country's recovery from the earthquakes. "There’s a renewed acknowledgement from Delcy that increased oil production is the pathway to rebuilding after the earthquakes and accomplishing what her government wants to do for the people who are suffering because of the earthquakes," one person familiar with the negotiations stated.

David Goldwyn, head of the international energy consulting firm Goldwyn Global Strategies, suggested that investment from independent oil producers and expansion of existing fields are likely to be Venezuela's primary source of new oil growth in the coming years. He noted that while major oil companies are waiting for political clarity, independent producers can move to de-risk their projects more quickly. However, Goldwyn cautioned that these investments are expected to add only about 300,000 barrels a day to the country's production within the next year, falling short of the millions of barrels desired by both Venezuelan and US authorities. He added, "Incremental production is all we will see until the framework improves, electricity is restored, and the political picture becomes clearer."