Washington reaches oil agreement with Venezuela

(MENAFN) Washington’s newly announced agreement with Venezuela’s state-owned oil company PDVSA envisions exports of up to 50 million barrels of crude. Yet, according to reports citing the Organization of Petroleum Exporting Countries (OPEC), Venezuela’s current production capacity remains below 1 million barrels per day, raising doubts about the feasibility of such commitments.

The deal follows President Donald Trump’s takeover of Venezuela’s energy sector after the capture of President Nicolas Maduro. Trump has publicly claimed that Venezuela will deliver between 30 and 50 million barrels of oil to the United States.

Despite holding the world’s largest proven oil reserves—nearly 20% of global deposits, surpassing countries such as Iran, Saudi Arabia, Canada, and the US—Venezuela’s output has been severely weakened. Years of sanctions and chronic underinvestment have left production stagnant. OPEC’s latest figures show output hovering around 934,000 barrels per day as of November, meaning it would take Venezuela 30 to 50 days to generate the volume Trump cited.

This limited capacity stands in stark contrast to US demand. Data from the US Energy Information Administration shows American consumption exceeds 20 million barrels daily, far outpacing what Venezuela can supply.

To address these constraints, the Trump administration has begun easing certain sanctions to allow Venezuelan crude to be marketed internationally. Officials also confirmed plans to permit imports of specialized oil field equipment, parts, and services through joint ventures with US and global energy firms.

The White House announced that Trump will meet Friday with oil industry executives to discuss potential participation in Venezuela’s energy sector, signaling an effort to attract outside investment and technical expertise to revive production.

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