Venezuela’s Oil Revival Accelerates as U.S. Majors Push Trump’s New Energy Order

Venezuela's oil production is surging, driven by U.S. oil giants eager to capitalize on the country's vast oil reserves as outlined in President Donald Trump's new energy strategy. With roughly 303 billion barrels of proven crude reserves, Venezuela is the world's largest holder of such resources, much of which is heavy crude oil from the Orinoco Belt.

Eleven of its 14 supergiant oil fields retain more than half of their original reserves, indicating strong potential for future production increases. Chevron, a leading U.S. oil company, has significantly increased its oil output in Venezuela from 40,000 barrels per day to 250,000 bpd over the past few years. This growth, primarily due to joint ventures with PDVSA, the state-owned oil company, is expected to continue, with Chevron forecasting a 50% increase in production by the end of 2028.

Other major oil companies, including Spain's Repsol and Great Britain's BP, are also actively engaged in expanding Venezuela's oil output. BP has set up a permanent office in Caracas and is developing the offshore Loran gas field, while Repsol aims to triple its production in the country over the next few years. Despite these efforts, many firms face challenges in Venezuela, such as heavy taxes, including a fixed 30% royalty on oil extraction and a 50% corporate income tax rate.

However, the recent 2026 Hydrocarbon Law Reform, introduced by acting President Delcy Rodríguez, aims to simplify the tax system and make the country more attractive for foreign investment.