The United States is pursuing plans to revitalize Venezuela’s oil production, with progress accelerating following recent regulatory changes by interim president Delcy Rodríguez. Two American companies—oilfield services provider SLB and Texas-based Hunt Oil—announced agreements with Venezuela’s state oil company PDVSA last week, with additional deal announcements expected in the coming weeks.
Venezuela holds approximately 17 percent of the world’s proven oil reserves, estimated at 303 billion barrels, yet contributes only about 1 percent of global oil supply due to decades of underinvestment, mismanagement, and international sanctions. Increasing production from Venezuela could significantly impact global energy markets, particularly given the closure of the Strait of Hormuz, which previously facilitated roughly one-fifth of worldwide oil and gas trade.
Access to Venezuelan oil assets became possible after the Trump administration detained former President Nicolás Maduro in a January raid. However, progress stalled during subsequent months as negotiations faltered and the country experienced consecutive earthquakes causing widespread damage. Momentum resumed last month when new fiscal regulations offered more attractive terms to foreign oil operators.
Despite Venezuela’s substantial oil reserves and strategic importance for U.S. energy security, operational challenges make investment risky. The country faces infrastructure deterioration, frequent power outages, political instability, and limited oversight capacity. Consequently, major international oil corporations are adopting a cautious approach, while smaller independent companies are moving forward with deals to establish positions quickly.
Current production agreements are expected to yield approximately 300,000 additional barrels daily over the next year—significantly below the millions of barrels Washington had previously targeted. Nevertheless, approximately 500,000 barrels per day are already flowing from Venezuela to U.S. refineries, representing a substantial portion of the nation’s current total output of roughly 1.25 million barrels daily.
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