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Flames rise from flare stacks at the Amuay refinery in los Taques, Venezuela, Wednesday, Jan. 14, 2026.
Matias Delacroix/AP
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Matias Delacroix/AP
CARACAS, Venezuela – Venezuela’s legislature advanced a bill on Thursday to loosen state control over the country’s vast oil sector in the first major overhaul sence the late socialist leader Hugo Chávez nationalized parts of the industry in 2007.
the legislation would formally break decades of state command over some of the world’s largest oil reserves, create new opportunities for private companies to invest and establish international arbitration for investment disputes.
Following the U.S. capture of former President Nicolás Maduro earlier this month, the Trump administration has ramped up pressure on acting President Delcy Rodríguez and other allies of the ousted leader to invite“`html
Venezuela’s Oil Production in 2026
Table of Contents
Venezuela’s oil production remains substantially below its peak levels, hampered by years of economic mismanagement, underinvestment, and U.S. sanctions, though recent easing of those sanctions has led to a modest increase in output. As of January 23, 2026, production hovers around 800,000 barrels per day, a considerable recovery from the lows of 2020 but still far short of the 1.9 million barrels per day produced in 2017.
petróleos de Venezuela, S.A. (PDVSA) and its Role
Petróleos de venezuela, S.A. (PDVSA), the state-owned oil company, is the primary actor in Venezuela’s oil industry. PDVSA controls all aspects of the oil sector, from exploration and production to refining and export. Its operations have been severely constrained by a lack of investment, skilled personnel departures, and corruption.
In 2019, the U.S. government imposed sanctions on PDVSA, restricting its access to U.S. markets and financial systems. The U.S. department of the Treasury details these sanctions and their evolution. These sanctions significantly curtailed PDVSA’s ability to import necessary equipment and expertise.
Example: In December 2023, the Biden administration eased some sanctions on Venezuela’s oil sector in response to democratic concessions made by the Maduro government. Reuters reported that this easing allowed Chevron and other U.S. companies to resume limited oil operations in Venezuela.
Impact of U.S. Sanctions and Recent Easing
U.S. sanctions directly contributed to the decline in Venezuela’s oil production. The sanctions limited PDVSA’s ability to maintain infrastructure, invest in new projects, and attract foreign investment. This resulted in a dramatic drop in output, exacerbating Venezuela’s economic crisis.
The partial lifting of sanctions in late 2023 and throughout 2024 has allowed for a gradual increase in production. However,the recovery is slow due to the extensive damage to infrastructure and the ongoing challenges facing PDVSA. The U.S. Energy Information Administration (EIA) provides detailed data and analysis on Venezuela’s oil sector, including the impact of sanctions.
Evidence: According to the OPEC Monthly Oil Market Report (December 2025), Venezuela’s average crude oil production in november 2025 was 790,000 barrels per day, up from 720,000 barrels per day in November 2024.
Political and Economic Context
Venezuela’s political instability and economic crisis have further elaborate its oil industry.The government of Nicolás Maduro has faced international criticism for its human rights record and its handling of the economy. Hyperinflation and widespread shortages of basic goods have led to a mass exodus of Venezuelans.
The oil sector is crucial to Venezuela’s economy, accounting for approximately 80% of the country’s export earnings. The decline in oil production has had a devastating impact on the Venezuelan economy, contributing to poverty and social
