Venezuela has the largest estimated oil reserves in the world, holding about 17% of global reserves, or 303 billion barrels. Despite this, its crude output is significantly low due to years of mismanagement, lack of investment, and sanctions. Venezuela’s oil is mostly heavy oil located in the Orinoco region, which is expensive to produce but technically easier to extract. In 2019, President Nicolás Maduro and then Vice President Delcy Rodriguez announced a five-year mining plan to increase mineral extraction to supplement oil production. Previous reports released by the government used terms like “reserve” and “resource” interchangeably, making it unclear if they fully understood their mining potential.
The 2018 “minerals catalog” estimated coal reserves at around 3 billion metric tons and nickel reserves at 407,885 metric tons, while presenting gold and iron ore resources in speculative terms. In 2021, a map of mineral reserves displayed various minerals without specifying the volumes. Venezuela lacks significant reserves of rare earths, which are critical for technology and manufacturing. The country was a founding member of OPEC but has faced ongoing challenges in electricity production that have negatively affected mining and oil production.
At its peak in the 1970s, Venezuela produced about 3.5 million barrels per day, accounting for over 7% of global oil output. However, production has since dropped below 2 million barrels per day during the 2010s, averaging around 1.1 million barrels a day last year, which equates to about 1% of global production. Experts suggest that if a genuine regime change occurs, it may increase oil availability over time as sanctions are lifted and foreign investment returns, though early stabilization might take time, as evidenced by the situations in Libya and Iraq.
The operational status of the mines associated with Maduro’s mining plan is uncertain. Maduro’s National Council recently claimed production of gold, coal, and iron ore increased in the first three quarters of 2025 but did not provide specific figures. Venezuela nationalized its gold sector in 2011, and significant production declines have occurred across various minerals, paralleling the oil sector’s struggles. For instance, bauxite production fell from 550,000 tons in 2017 to 250,000 tons by 2021, while gold production was reported at 480 kg.
Venezuela nationalized its oil industry in the 1970s, forming Petroleos de Venezuela S. A. (PDVSA). In the 1990s, there were efforts to invite foreign investment into the oil sector, but after Hugo Chavez was elected in 1999, PDVSA was mandated to have majority ownership in oil projects. Major companies like Exxon and Conoco left during this time. PDVSA initiated joint ventures with various international oil firms to enhance production as well. Maduro has indicated intentions to license mines in disputed territories with Guyana.
The U. S. was historically the main buyer of Venezuelan oil, but sanctions have shifted primary exports to China, which has become the country’s largest creditor. Venezuela repays its debts to China with crude oil deliveries. Legal battles are ongoing regarding PDVSA’s significant refining assets, including CITGO in the United States, where creditors are seeking control. A number of oil tankers have defied U. S. sanctions by loading Venezuelan crude and fuel since the beginning of the year.
With information from Reuters
