Venezuela's Huge Oil Reserves and Future

Venezuela's Oil Reserves: Close to a Global Giant

Recently, U.S. President Donald Trump's military operations towards Venezuela have brought the country's vast oil resources back into global focus.

The Trump administration has announced its intention to re-engage major American oil companies in the country due to the attacks initiated against Venezuelan President Nicolas Maduro. This situation increases uncertainties regarding Venezuela's potential for energy transformation.

The World's Largest Proven Oil Reserves

According to 2023 data, Venezuela has approximately 303 billion barrels of proven oil reserves, making it home to the world's largest reserves. This figure corresponds to about 17 percent of global oil reserves.

However, much of this oil, primarily from the old Orinoco Belt reserves, requires high technical expertise, and despite this, the country's production accounted for only 0.8 percent of the global total in 2023.

Venezuela's Oil Production and Challenges

The daily 742 thousand barrels of oil production represents a 70 percent decline compared to 2013 levels. PDVSA is facing significant challenges due to budget constraints, personnel shortages, and a decrease in international investments.

Additionally, during the terms of former President Hugo Chavez and Maduro, the excessive use of PDVSA to support social programs has increased state control over the company, reducing its capacity to invest.

The Energy Rise Between China and Venezuela

While Venezuela retains its status as one of the founding members of OPEC, the nationalization of the oil industry and limitations on foreign investments have shaped the oil market in the country. Previously, the U.S. was the largest buyer of Venezuelan oil; however, this position has now been taken over by China.

Despite all these challenges, oil exports continue to remain the primary source of income for Venezuela.