Hugo Chavez to Donald Trump: Venezuela’s tumultuous oil history
Venezuela’s vast oil reserves once promised enduring power and prosperity, but decades of political upheaval, mismanagement and foreign intervention have turned them into the centrepiece of a global energy contest. The Latin American country has the world’s largest oil reserves, outstripping Saudi Arabia, Russia and Iran. However, despite having more than 300 billion barrels in reserves,…
Venezuela, endowed with the world's largest oil reserves, has been marred by political instability, mismanagement, and external interference. Despite possessing over 300 billion barrels, the country only produced around 1 million barrels per day (bpd) in 2025. The nation's oil journey began in the 1960s when output peaked at 3.7 million bpd, nearly tripling current levels.
However, the Venezuelan government restricted production to conserve reserves, leading to stagnation and decline. Nationalised in 1976, PDVSA became the cornerstone of Venezuela's economy during Hugo Chavez's presidency from 1999 to 2013. In 2013, Nicolas Maduro ascended to the presidency, inheriting Chavez's ideology of expelling American influence and competing economically with the US.
US sanctions against Venezuela in 2017 further exacerbated the situation, but China became the primary oil trading partner. In 2023, the US lifted sanctions for six months, allowing limited trade and paving the way for Trump's "biggest oil deal in world history", which grants the US the right to extract 65 billion barrels, more than 21% of the reserves.
The heavy sour crude, difficult to refine, could boost US profits but raises concerns about Venezuela's economic future and political stability.
Written by urgent.news from The National UAE's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
