The inside story on the historic U.S.-Venezuela oil deal and how it will work
THE INSIDE STORY ON THE HISTORIC U.S.-VENEZUELA OIL DEAL AND HOW IT WILL WORK
A small delegation of journalists, including a team from CNBC, spent a tightly scheduled 24‑hour visit to Caracas alongside the U.S. secretary of energy to observe the signing of a series of oil agreements between the Venezuelan government and Western firms. The trip offered a rare glimpse into a country still reeling from a June earthquake that kept Simón Bolívar International Airport partially closed, forcing the group onto one of the few planes that managed to land and then a short bus ride into the capital.
Travel to Caracas
The arrival in Caracas highlighted the stark contrast between the city’s 1980s‑era office towers and the poverty that now grips much of the population. The journalist noted that many structures in the downtown business district were relics of a period when Venezuela’s oil wealth was at its peak.
OIL Production Decline
Venezuela’s oil output reached an estimated 3.5 million barrels per day in 1997, but the subsequent rule of Hugo Chávez and later Nicolás Maduro saw production tumble to below 1 million barrels per day for most of 2025. Recent figures show a modest rebound to just over 1 million barrels per day, while Russian and Chinese companies have profited from the country’s dwindling resources.
U.s. Stake in Nabep
One of the central elements of the new arrangement involves the United States taking an equity position in North American Blue Energy Partners (NABEP), a private operator led by Alejandro Betancourt. Although Betancourt has faced investigations in Switzerland, officials emphasized that no charges were filed and that partnering with local operators who have “warts” is often unavoidable in volatile markets. The U.S. investment will be exchanged for a share of future oil output.
Chevron $7 Billion Investment
Chevron, which has maintained a presence in Venezuela for more than a century, announced a separate commitment of roughly $7 billion spread across three projects. This infusion of capital is distinct from the NABEP deal but aims at the same goal of reviving production capacity.
Chris Wright's Projections
U.S. Secretary of Energy Chris Wright expressed confidence that Venezuelan output could rise by a few hundred thousand barrels per day in the near term. Combined with Chevron’s spending, officials suggested that reaching 2 million barrels per day might be achievable relatively soon, provided the framework ensures that a portion of revenues and taxes returns to the Venezuelan populace rather than being siphoned abroad.
Media Reaction in Caracas
During a visit to the presidential palace, the delegation observed Venezuelan journalists visibly moved to return after months of bans and intimidation. Some reporters were reported to be weeping, underscoring the symbolic importance of the event beyond the oil contracts themselves.
Global OIL Prices
At the time of writing, U.S. crude prices sit above $100 a barrel, with Brent trading at a comparable level and diesel hitting $6 per gallon for the first time in the United States. These market conditions add urgency to the effort to bring Venezuelan production back online, while also fueling speculation across social media and industry circles.
The series of agreements—U.S. equity in NABEP, Chevron’s multi‑billion‑dollar projects, and participation from Italy’s ENI and private firms such as Aspect Energy—represent a coordinated attempt to inject capital, expertise, and operational capacity into a once‑dominant oil sector. Whether the venture will translate into sustained production growth and tangible benefits for ordinary Venezuelans remains to be seen, but the current framework marks a notable shift away from the dominance of Russian, Chinese, and Cuban interests that have long extracted value from the country’s oil fields.
Source: CNBC · 2026-09-11