Introduction
Venezuela boasts the world’s largest oil reserves, totaling 304 billion barrels. This is 14% more than the second-place holder, Saudi Arabia, which holds 267 billion barrels. The United States comes in third with 74 billion barrels, and Mexico follows with a mere 6 billion barrels, according to the International Energy Agency.
Global Perspective
Despite possessing 17% of the world’s oil reserves, Venezuela contributes a mere 1% to global oil production. To illustrate the magnitude of Venezuela’s reserves, if each barrel were sold at $50 (the 2025 average), the total would amount to a staggering $15.2 trillion. For context, the U.S. GDP is around $30 trillion, while China’s stands at approximately $19.4 trillion. Adding the GDPs of Germany, Japan, and India (the world’s 3rd, 4th, and 5th largest economies) would still fall short of Venezuela’s oil reserve value by $1.8 trillion.
Potential Impact on Venezuelans
If these $15.2 trillion were distributed among Venezuela’s 33.6 million inhabitants (including those who have fled the country), each citizen would receive $452,000. However, this remains a theoretical scenario, as Venezuela’s current production levels are far from these figures.
Current Production and Challenges
Currently, Venezuela produces around one million barrels daily. In 2024, this figure was 952,000 barrels, and it’s expected to reach one million and a half in 2025. This is a drastic decrease from the 3.5 million barrels produced daily in the 1970s, when Venezuela accounted for 7% of global oil production. In the past decade, the country’s output dropped to 2%, and now it’s down to a mere 1%.
The sanctions imposed by the U.S. and the blockade since August 20 have severely limited Venezuela’s market access, forcing them to sell oil at a discount of $10-$12 per barrel to their primary buyer, China, which purchases 80% of Venezuela’s exports.
PDVSA’s Decline
The decline in Venezuela’s oil production is part of a larger crisis affecting PDVSA, the state-owned oil company. Once Latin America’s largest firm, PDVSA now struggles due to mismanagement, rampant corruption, loss of human capital, and U.S. sanctions.
Citgo Petroleum: A Valuable Asset in the U.S.
Among PDVSA’s valuable assets is Citgo Petroleum, located in the U.S., under embargo or confiscation. Citgo owns three refineries in Texas, Louisiana, and Illinois with a capacity of 800,000 barrels per day, making it one of the top five refiners in the U.S. These assets are complemented by a network of 4,400 service stations.
Legal Battle Over Citgo
Since 2019, the Venezuelan government has lost control of Citgo’s assets. Initially confiscated as part of pressure measures against Nicolás Maduro’s regime, a Delaware court authorized a sale process. Amber Energy, an Elliott Investment group affiliate, won the bid with a $5.9 billion offer. Of this amount, $2.1 billion will go towards paying bondholders of PDVSA. The Venezuelan government has contested this process, alleging theft of their property. The Citgo sale process remains unfinished due to lack of approval from the U.S. Office of Foreign Assets Control (OFAC).
Key Questions and Answers
- What are Venezuela’s oil reserves? Venezuela holds the world’s largest oil reserves, estimated at 304 billion barrels.
- How do Venezuela’s reserves compare to other countries? Venezuela’s reserves are 14% more than Saudi Arabia’s, which holds the second-largest reserves.
- What is Venezuela’s current oil production? Venezuela produces around one million barrels daily, a significant decrease from its peak in the 1970s.
- What challenges does PDVSA face? Mismanagement, corruption, loss of human capital, and U.S. sanctions have contributed to PDVSA’s decline.
- What is the status of Citgo Petroleum? Citgo, a valuable PDVSA asset in the U.S., is under embargo or confiscation, with its sale process currently stalled.
