Venezuela Bets Oil Investment on Light Crude, Not the Orinoco
Venezuela is famous for extra-heavy oil, yet its energy ministry now says exploration effort is going to lighter barrels. The reason is arithmetic, not fashion. The post Venezuela Bets Oil Investment on Light Crude, Not the Orinoco appeared first on The Rio Times .
Venezuela is shifting its oil investment focus away from heavy crude towards lighter grades, such as Venezuela light crude, according to Hydrocarbons Minister Paula Henao. Henao addressed investors in Houston on 19 August 2026, stating that the country has opportunities in light and medium crude, as well as in gas production. The move comes after PDVSA, Venezuela's state oil company, realized the strategic importance of Venezuela light crude, which can be used as a diluent to reduce the cost of transporting heavy crude oil.
PDVSA has identified 916 areas for exploration and production, aiming to lift overall output and reduce its reliance on imported diluents like naphtha. By using Venezuela light crude as a diluent, PDVSA can offset the cost of importing naphtha and shorten the supply chain. The lighter crude can be sold as well, offsetting the cost of importing it. Currently, PDVSA pumps only 200,000 to 240,000 barrels per day of extra-heavy crude, while its total output is around 1.2 million barrels per day.
Rebuilding the infrastructure necessary for processing Venezuela light crude is a significant undertaking, and the company has not published a clear capital budget to support this shift. However, the move is seen as a significant change in strategy for a nation historically known for its heavy crude oil production.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
