Summary
Rebuilding Venezuela's oil industry will require a lot of money and time due to years of neglect and sanctions. While existing wells could provide some quick increases in production, full recovery to previous levels will need significant investment in infrastructure. President Trump indicated the U.S. might help subsidize efforts for rebuilding.
Key Facts
- Venezuela's oil production has decreased significantly from around 3.5 million barrels per day in the late 1990s to less than 1 million barrels per day.
- For a full recovery, it is estimated that $80 to $90 billion would be needed over six to seven years to increase production to 2.5 million barrels per day.
- A larger scale effort to reach over 3 million barrels per day could cost $183 billion over 15 years.
- Factors needed for recovery include a secure operating environment, clear fiscal policies, and reduced sanctions.
- Some quick production gains might be possible by enhancing output from already functioning wells.
- President Trump mentioned potential U.S. subsidies for oil companies to help rebuild Venezuela's energy infrastructure.
- U.S. oil companies may find Venezuela's proximity to Gulf Coast refineries an attractive factor for investment.
