Inside Venezuela’s oil industry: World’s largest oil reserves, failing infrastructure

illuminem summarises for you the essential news of the day. Read the full piece on France 24 or enjoy below:

🗞️ Driving the news:
Following the capture of President Nicolás Maduro, US President Donald Trump signalled that Washington will be “very strongly involved” in Venezuela’s oil industry, drawing renewed attention to the country’s vast reserves and deeply weakened energy sector.

🔭 The context: Enormous oil wealth, collapsing capacity
• Venezuela holds the world’s largest proven oil reserves, estimated at 303 billion barrels, or about 17% of global reserves
• Most reserves are heavy crude located in the Orinoco Belt, which is technically producible but costly
• Chronic mismanagement, underinvestment, and sanctions have crippled output

🌍 Why it matters for energy and geopolitics: Power, sanctions, and recovery risks
• Oil is central to Venezuela’s economy and geopolitical leverage
• Sanctions shifted exports from the US to China, before exports were fully halted by a US vessel blockade in December 2025
• Venezuela’s state oil company PDVSA has struggled to maintain infrastructure and production
• Any future recovery would likely depend on sanctions relief and renewed foreign investment
• Past cases in Libya and Iraq suggest that even with political change, oil-sector recovery is slow and uncertain

⏭️ What’s next: High stakes, uncertain outcomes
• Trump has indicated US oil majors could play a role if political conditions change
• Control over overseas refining assets such as CITGO remains contested in US courts
• Analysts expect prolonged instability to delay any meaningful production rebound
• Venezuela’s oil future now sits at the intersection of regime change, sanctions policy, and global energy markets

📈 One stat: Despite holding 303 billion barrels of oil, Venezuela currently produces barely one-third of its 1970s peak output, highlighting the scale of industrial collapse.

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