An oil extraction pump in Venezuela’s Zulia state. (Source: Shutterstock)
Venezuela’s oil production suffered under the watch of its so-called “socialist” leadership, and despite production growth of recent, the OPEC country is battling to break through a ceiling of what is seemingly 800,000 bbl/d.
Venezuela’s ability to break through the production ceiling will depend on a number of factors, including further easing of U.S. sanctions, which could spur additional investments. But, based on the direction of the current political spat between Washington and Caracas, Venezuela’s breakout moment may still be years away, if it happens.
Lost production between 1999 and the likely average this year of 734,000 bbl/d is on track to reach 2.07 MMbbl/d, according to data compiled by Hart Energy from OPEC monthly and annual reports.
In 1999, Venezuela’s late president Hugo Chávez inherited production of around 2.81 MMbbl/d. This compares to peak production of 3.23 MMbbl/d in 1997, two years prior to the leader taking office.
Venezuela’s production losses are a whopping 2.49 MMbbl/d over a quarter of a century, when taking into account the years beginning in 1997.
RELATED
LatAm Production to Grow 25% by 2028: IEA
Considering the oil prices spike during this time period, the lost revenue potential is nothing short of massive and probably even harder to swallow for leaders and citizens alike. The lost income coupled with political instability led to Venezuela’s great migration and the departure of over 7 million citizens in recent years.
U.S. oil sector sanctions imposed in 2019 by the Trump administration aren’t the only reasons why Venezuela’s production has sunk so low. Widespread oil sector corruption and a lack of investments are also part of a complicated equation.
Recommended Reading
LNG Canada Ships First Cargo in Tanker Headed to South Korea
2025-07-01 - Canada has entered the LNG export business with the first shipment at the LNG Canada facility. The nation is expected to serve the Asian market, primarily.
Freeport LNG Export Plant in Texas On Track to Exit Outage, LSEG Data Shows
2025-05-07 - In a report to Texas environmental regulators late on May 6, Freeport said the three liquefaction trains at the export plant shut that morning due to an incoming power feed interruption.
Latin America Playing Small Ball—at Steep Prices—for LNG
2025-05-28 - Gas sold at a Henry Hub prices of $3.50/MMBtu in the U.S. can fetch between $10/MMBtu to $14/MMBtu in Latin America.
Report: LNG Canada Expected to Start Production Within Days
2025-06-18 - LNG Canada will be the only west coast export terminal in North America. Canada has plans to become a significant player in the LNG sector by the end of the decade.
US NatGas Prices Up 3% to 1-Week High on Hotter Weather Forecasts, Rising LNG Exports
2025-07-14 - U.S. natural gas futures climbed about 3% to a one-week high on July 14 on forecasts for hotter weather over the next two weeks than previously expected and rising flows of gas to LNG export plants.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.