Analysis Suggests Limited Potential for Increase in Venezuela's ST Oil Production

Written by Emily J. Thompson, Senior Investment Analyst

Source: aastocks

Updated: Jan 05 2026

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Source: aastocks

Venezuela's Oil Production Challenges: Despite having the largest oil reserves globally, Venezuela is unlikely to significantly increase oil production in the short term, even with substantial investments from US oil companies due to various challenges.
Investor Concerns: Security issues, deteriorating infrastructure, and political instability, including the legitimacy of President Nicolas Maduro's arrest, are major concerns for oil investors in Venezuela.
Historical Production Decline: Venezuela, a founding OPEC member, saw its oil production peak at 3.5 million bpd in the 1970s but fell to about 1.1 million bpd last year, representing only 1% of global production.
US Oil Companies' Presence: The nationalization of Venezuela's oil industry in the 2000s has led to a significant reduction in US oil company operations, with Chevron being the only major player currently active in the country.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.