Venezuela’s oil sector faces deep structural challenges, with fewer than 30% of wells currently operational despite ongoing reforms.
Less than 30% of Venezuela’s oil wells are currently operational, underlining the scale of the country’s energy crisis despite renewed efforts to revive production.
Figures released by the Venezuelan Petroleum Chamber (CPV) show that only 8,491 of the country’s 30,722 wells are active, with output hovering around one million barrels per day.
That is a sharp decline from two decades ago, when the country produced about three million barrels daily and ranked among the world’s leading oil exporters.
Structural decline
Venezuela holds the world’s largest proven crude oil reserves, but years of corruption, underinvestment and mismanagement have severely weakened the sector.
US sanctions have compounded the crisis, restricting access to finance, technology and international markets, and accelerating the collapse in production.
Analysts say the figures reflect deeper structural problems, including ageing infrastructure, limited technical capacity and a prolonged investment deficit.
Push for foreign investment
At an energy forum in Caracas, US officials signalled support for increased private sector involvement, particularly from American companies, as part of efforts to rebuild the industry.
The CPV has called for the full removal of sanctions, arguing that easing restrictions is critical to recovery and long-term stability.
Multinational firms including Chevron and Repsol are already advancing projects in the country, reflecting cautious investor interest.
Reform agenda
The interim government led by Delcy Rodríguez has introduced reforms to hydrocarbons and mining laws, opening the sector to foreign and domestic investors.
State oil company PDVSA says more than 3,400 wells have been reactivated as part of recovery efforts.
The industry is targeting an average output of 1.3 million barrels per day in 2026, though this remains far below historical levels.
Recovery faces steep hurdles
Recent developments suggest cautious optimism, with oil companies reactivating rigs and exploring new projects. However, experts warn that restoring Venezuela’s production capacity will require sustained investment, regulatory stability and years of rebuilding.
For now, the gap between potential and actual output highlights the enduring challenges facing one of the world’s most resource-rich, yet underperforming, oil economies.
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