Axios: US Energy Department faces criticism over Venezuela oil deals

The US Department of Energy is facing criticism from industry experts and some oil companies over the slow pace of oil agreements involving Venezuela following the detention of President Nicolás Maduro in January, Axios reports, citing officials.

"We have no new concessions. No new deals. It is absolutely a problem," an unnamed senior U.S. official told the outlet.

According to the official, the Energy Department is in charge of this, and they have some explaining to do.

Axios reported that major energy companies including ExxonMobil and ConocoPhillips have indicated they are reluctant to return to Venezuela because of continued uncertainty. However, several smaller oil companies have expressed interest in participating in Venezuelan oil production projects.

“Starting January 4th, it should have been carte blanche for all American producers to take risk. That's America First," former Trump adviser on Venezuela Mauricio Claver-Carone told Axios.

"Instead, American wildcatters got stuck with onerous conditions and a competitive disadvantage versus the mostly foreign majors that were in bed with Maduro,” he noted.

The Department of Energy said it has been advocating for legitimate U.S. exploration and production companies and working to improve Venezuela's legal framework to expand access for American firms.

"The Energy Department continues to work with Venezuelan officials and American energy companies of all sizes to unleash Venezuela's resource potential, and we are delivering," department spokesman Ben Dieterich remarked.

In early June, US Energy Secretary Chris Wright said Venezuela had nearly tripled its oil production since December of last year.

On January 3, the United States attacked civilian and military targets in Venezuela and detained President Nicolás Maduro and his wife, Cilia Flores, transporting them to the United States. Two days later, they appeared before the U.S. District Court for the Southern District of New York, where they were charged with involvement in drug trafficking.

By Bakhtiyar Abbasov