US pressures Venezuela to do more to stimulate investment

Wright is one of the highest-ranking U.S. officials to visit Venezuela in nearly 30 years, reflecting how ties between the countries are warming after U.S. forces in January captured Venezuela’s former leader, Nicolas Maduroand they forcibly extracted him to the United States.

Even though lawmakers last month approved sweeping changes to legislation governing the oil industry, Wright said he wanted Venezuela’s government to go much further in opening its economy to foreign energy companies.

“The idea is to use leverage to drive progress,” Wright told reporters in Caracas, the capital, on Wednesday.

Regarding the new energy law, he stated:

“It is a significant step in the right direction, although, in my opinion, it is probably not wide enough nor clear enough to encourage the large capital flows that would be desired.”

Some American oil giants, such as Exxon Mobilwhose operations in Venezuela were nationalized two decades ago, have expressed skepticism about returning to Venezuela, citing legal risks and the potential for political unrest.

While acknowledging that more could be done to attract American investment to Venezuela, Wright emphasized that international oil companies often take risks by operating in countries with a history of instability, since that is where the oil is found.

He cited the “wave of investment” expected to come to Libya, controlled by two rival factions.

At the start of his three-day visit, Wright met with Maduro’s successor, Delcy Rodriguezinterim president.

He commented that he planned to travel with Rodríguez on Thursday to learn first-hand about oil operations.

Wright, the former CEO of an oil company at the heart of the US fracking boom, was largely positive in his assessment of Rodríguez’s willingness to make big changes to Venezuela’s economy and political system.

He stated that Venezuela had made significant efforts to improve the economic situation in the weeks following the capture of Maduro, who presided over a devastating economic crisis.

Additionally, Wright stated that he hoped Venezuela would eventually move toward a more representative political system.

Wright cited areas where Venezuela could make greater progress in dismantling its authoritarian regime and aligning itself more closely with the United States, after decades of forging alliances with countries often at odds with Washington.

“There are still political prisoners in jail here,” Wright said, citing the hundreds still detained after the recent release of others.

“There are still relations here with China, Russia and Iran. Those are issues that need to be transitioned.”

Wright’s visit caused surprise in Caracas.

The security forces made way for their large detachment and entourage to tour the city at full speed, where there are still murals celebrating Venezuela’s ties with Iranian and Cuban leaders.

The changes in Venezuela are coming after the United States launched a months-long military campaign against Maduro, which included dozens of deadly attacks on small vessels that the Trump administration said were transporting illicit drugs.

The president Donald Trump warned Rodríguez that he could suffer a similar fate to Maduro if he does not cooperate with the United States.

After meeting with Rodríguez, she and Wright briefly answered questions from reporters outside the presidential palace, a rare display of candor from the new Venezuelan leader. Wright later met with foreign journalists at the JW Marriott Hotel.

“A free press,” he said, “is a fundamental part of a civil society.”