Caracas/ Washington: The arrest of Venezuelan President Nicolás Maduro by the United States has thrust the crisis-hit country’s vast oil wealth back into the global spotlight, as President Donald Trump signals a push for American oil companies to re-enter Venezuela’s crumbling energy sector.
With an estimated 303 billion barrels of proven reserves, the world’s largest, Venezuela offers huge potential — but unlocking it could mean a 4-year gamble involving over 100 billion dollars and massive political risk.
Once Latin America’s richest nation, Venezuela’s oil-powered prosperity has collapsed into decay. State firm PDVSA became a political instrument; foreign partners were pushed out, skilled engineers left, and decades of underinvestment turned once-bustling oilfields, pipelines, and refineries into rusting relics.
Today, leaky pipelines, looted rigs, frequent fires and inoperative port facilities make the industry look more like a cemetery than a treasure.
Experts estimate that restoring production to 1970s levels would necessitate investing at least 10 billion dollars annually for a decade to rebuild infrastructure, including pipelines, ports, refineries, rigs, and security systems. Despite holding the largest reserves, Venezuela pumped only about 9 lakh barrels per day in November 2025, less than half its early-2010s output, and any meaningful recovery is unlikely before 2027.
As of now, much of the remaining output hinges on major US company Chevron, operating under special US licences and contributing roughly a quarter of Venezuela’s production, while staying extremely cautious amid sanctions and political uncertainty. Analysts warn that without durable political stability, clear contracts and policy continuity, companies will hesitate to commit billions, no matter how attractive heavy crude is for US refineries.
India could also gain if supplies of Venezuelan heavy crude resume at scale, reducing feedstock costs for Indian refiners and boosting margins, after previously importing up to 4 lakh barrels per day. But at the moment, Venezuela’s oil remains more a symbol of lost promise than assured opportunity.