CARACAS, Venezuela (AP) — U.S. Energy Secretary Chris Wright visited Venezuela to assess its struggling oil industry. This trip highlights the U.S.’s role in trying to revitalize the nation’s energy sector.
During his three-day visit, Wright met with Venezuela’s acting President Delcy Rodríguez at the Miraflores Palace in Caracas. Their discussions included how to rebuild the country’s most critical industry amid changing political dynamics.
Wright’s arrival comes at a time when the U.S. is easing sanctions to enable foreign companies to operate in Venezuela. Last month, a new law was passed that opens the oil sector to private investment. This marks a significant shift away from the socialist policies that have dominated Venezuela for over two decades.
“I bring today a message from President Trump,” Wright said, expressing the administration’s desire to improve relations with Venezuela and foster economic opportunities for its people.
Rodríguez acknowledged the ups and downs between the two countries but emphasized the importance of a cooperative “energy agenda.” She believes diplomatic channels can lead to a mutually beneficial relationship.
The new law aims to attract major U.S. oil companies, which have been hesitant to invest due to past losses under previous regulations favoring the state-run company, PDVSA. Potential investors now have more control over production and sales, and disputes can be mediated by independent arbitrators, a significant change from previous mandates requiring local court resolutions.
Wright noted that while the reform is promising, it might not be enough to attract large capital flows right away. He plans to visit oil fields to see the situation firsthand.
Venezuela has the world’s largest proven oil reserves and typically produces about 1 million barrels a day. However, it has faced crippling sanctions that limited its access to global markets. These actions have pushed the government to resort to unregulated means to sell its oil.
Since Maduro’s ousting in January, the U.S. shifted its strategy to managing Venezuela’s oil production and revenue flows. Wright indicated that the blockade is essentially over, with Venezuelan crude now selling for higher prices, benefiting specific projects in the nation.
As this transition unfolds, the international community is watching closely. The future of Venezuela’s oil sector—once a powerhouse in the region—hangs in the balance, with the potential for change sparking both hope and skepticism among investors and citizens alike.
For more updates, visit AP News.
Source link
Donald Trump, Nicolas Maduro, U.S.-Venezuela conflict, Venezuela, Christopher Wright, Energy industry, Sanctions and embargoes, Venezuela government, General news, Latin America, Send to Apple News, Central America, South America, World news, Politics, United States government, Business, US Energy Corp., World News
