Oil industry in Venezuela - statistics & facts
Venezuela had everything to be a titan in the global oil industry. One of the founding members of the Organization of the Petroleum Exporting Countries (OPEC), the South American country holds the largest crude oil reserves in the world amounting to more than 300 billion barrels. Despite its advantageous resources, a combination of mismanagement, production crises, insufficient financial assets, and economic sanctions have severely affected the Venezuelan oil industry and the national economy as a whole.
Venezuela’s refining throughput has also suffered. With the decline in crude output, aggravated by a scarcity of chemicals required in the process, the petroleum-rich country has seen its annual refinery production dip below 150,000 barrels per day since 2019, or roughly 15 percent of its refining capacity. As a result, shortages of fuels such as gasoline – for years heavily subsidized by the government – have become a constant struggle.
As of 2024, Venezuela’s GDP forecasts for 2025 remained below 110 billion U.S. dollars. Meanwhile, outlooks for the country’s oil industry hinge largely on whether U.S. President-elect Trump will continue the hardline approach of his first term or allow exports to the U.S., one of Venezuela’s most important oil trade partners, to continue.
From petrostate to oil crisis
With an annual crude oil production of more than three million barrels per day, Venezuela was once, along with Mexico, one of the two largest oil-producing countries in Latin America. However, after nearly two decades of persistent decline in output, the country has dropped to fourth in the region, overtaken by Brazil and Colombia. In 2023 and 2024, Venezuela's monthly crude output climbed again slightly, profiting from Chevron being allowed to ship crude to the U.S. under a special license introduced in 2023. Nevertheless, production has fallen by more than 70 percent in comparison to a decade earlier.Venezuela’s refining throughput has also suffered. With the decline in crude output, aggravated by a scarcity of chemicals required in the process, the petroleum-rich country has seen its annual refinery production dip below 150,000 barrels per day since 2019, or roughly 15 percent of its refining capacity. As a result, shortages of fuels such as gasoline – for years heavily subsidized by the government – have become a constant struggle.
A history of dependency
The development of Venezuela’s economy is inextricably entangled with that of its oil industry. This sector has historically accounted for more than 80 percent of Venezuelan exports, even reaching a whopping 96 percent share in 2013 before falling to around 12 percent.As of 2024, Venezuela’s GDP forecasts for 2025 remained below 110 billion U.S. dollars. Meanwhile, outlooks for the country’s oil industry hinge largely on whether U.S. President-elect Trump will continue the hardline approach of his first term or allow exports to the U.S., one of Venezuela’s most important oil trade partners, to continue.
