Venezuela has the world’s most oil: Why doesn’t it earn more from exports?
Summary
Venezuela has the largest oil reserves in the world but currently earns very little from oil exports. The country faces challenges such as tough-to-extract oil, ageing infrastructure, and international sanctions, which limit its oil production and sales.Key Facts
- Venezuela holds 303 billion barrels of proven oil reserves, the largest in the world.
- The Orinoco Belt, where most of Venezuela’s oil is located, contains extra-heavy crude oil, which is costly and difficult to extract.
- PDVSA, Venezuela's state-owned oil company, manages most oil operations but struggles due to old equipment, lack of investment, mismanagement, and sanctions.
- Venezuela's gasoline prices are extremely low due to government subsidies, costing about $0.04 per liter as of 2025.
- In 2023, Venezuela exported $4.05 billion worth of crude oil, significantly less than countries like Saudi Arabia and the US.
- Venezuela's oil output has dropped over the years because of infrastructure issues, technical challenges, and international sanctions.
- Venezuela was a founding member of OPEC, created in 1960, and once one of the primary oil suppliers to the US.
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