Venezuela's Oil Sector
Potential and Constraints
Venezuela holds the world's largest proven crude oil reserves — approximately 303 billion barrels as of 2022, according to the BP Statistical Review — surpassing Saudi Arabia's 267 billion barrels. However, Venezuela's production has collapsed from a peak of approximately 3.3 million barrels per day (mbpd) in 1970 to under 800,000 bpd in recent years due to mismanagement, sanctions, and infrastructure degradation under PDVSA (Petróleos de Venezuela, S.A.). Venezuela produces heavy crude oil (API gravity below 20°) that requires diluents for pipeline transportation and export.
- Venezuela's proven reserves: ~303 billion barrels (world's largest, concentrated in the Orinoco Belt).
- PDVSA is the state-owned oil company; majority of production is from the Orinoco Heavy Oil Belt in Bolívar state.
- Venezuelan heavy crude requires mixing with light crude or naphtha (diluents) for export.
- Chevron and other international majors were the primary beneficiaries of the 2022–2024 OFAC license expansions.
- India has imported Venezuelan crude through intermediary arrangements even during sanctions periods.
● Tracked since March 14, 2026 · last seen May 06, 2026 · updates as the daily brief publishes
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