Venezuela has the world’s largest oil reserves, holding about 17% of global reserves, or 303 billion barrels, primarily consisting of heavy oil. Its crude output is significantly low due to mismanagement, lack of investment, and sanctions. Although Venezuela was a founding member of OPEC and produced as much as 3.5 million barrels per day in the 1970s, production fell below 2 million bpd during the 2010s, averaging 1.1 million bpd last year.
Experts suggest that if there is a genuine regime change in Venezuela, oil output could potentially increase over time as sanctions are lifted and foreign investment returns. However, historical precedents from countries like Libya and Iraq indicate that such changes do not lead to quick stabilization of oil supply.
Venezuela nationalized its oil industry in the 1970s with the establishment of Petroleos de Venezuela S. A. (PDVSA). In the 1990s, the country opened its oil sector to foreign investment, but after Hugo Chavez’s election in 1999, it required that PDVSA maintain majority ownership of all oil projects. PDVSA has partnered with various international companies to enhance production.
The United States was once the largest buyer of Venezuelan oil, but due to sanctions, China has become the main market. Following a U. S. blockade of Venezuelan vessels in December 2025, oil exports were effectively halted. PDVSA also owns refining assets outside Venezuela, including CITGO, which are contested by creditors in U. S. courts.
With information from Reuters
