US Energy Secretary Wright is going to brief the panel on Venezuela and oil today - Punchbowl

US Energy Secretary Wright is going to brief the panel on Venezuela and oil today - Punchbowl

U.S. Energy Secretary Wright to Brief Panel on Venezuela Oil Strategy Amid Geopolitical Shifts

U.S. Energy Secretary Chris Wright is set to address a congressional panel on February 23, 2026, detailing the administration's strategy for revitalizing Venezuela's oil sector following a dramatic geopolitical realignment. The briefing comes amid Washington's first on-the-ground assessment of Venezuela's energy infrastructure since 2006, as part of a broader effort to restructure global oil markets and counter Russian influence according to Reuters.

Wright's recent visit to Caracas, the highest-level U.S. energy engagement with Venezuela in decades, focused on partnerships with state oil company PDVSA and international firms like Chevron and Repsol. A $2 billion oil supply agreement and a proposed $100 billion reconstruction plan—announced after the January capture of former President Nicolás Maduro—form the cornerstone of this initiative as reported by CNN. The U.S. has issued licenses permitting foreign exploration and production, signaling a shift from years of sanctions that crippled Venezuela's oil output.

The administration faces significant challenges, including decades of underinvestment, political instability, and lingering skepticism about Venezuela's democratic trajectory. Despite these hurdles, recent reforms to Venezuela's hydrocarbon law now grant foreign producers operational autonomy, a critical step to attract capital according to Reuters. During his Caracas visit, Wright highlighted plans to double production at the Petropiar joint venture with Chevron within 18 months, with potential quintupling over five years as reported by CNN.

Analysts note the move aligns with a broader "doctrine of American energy dominance," aiming to leverage U.S. shale abundance and alliances with Gulf states to reshape oil markets according to Reuters. However, Senator John Hickenlooper (D-CO) described the effort as "impossibly difficult," underscoring risks from Venezuela's volatile political environment according to Reuters.

While the U.S. does not recognize interim President Delcy Rodríguez's government, Energy Secretary Wright emphasized that oil investments are essential to restoring economic stability for Venezuelans. The briefing will likely address how to balance geopolitical objectives with the need for transparent governance, as calls for new elections and political reforms persist as reported by CNN.

The outcome of this strategy remains uncertain, but its success could redefine Venezuela's role in global energy markets—and shift the balance of power in oil-dependent geopolitics.