Calay News
Although Venezuela is not among the world’s largest oil producers, it does lead the ranking of countries with the largest amount of crude oil reserves, according to the Organization of Petroleum Exporting Countries (OPEC). Venezuela has the largest recoverable oil reserves in the world, with 303 billion barrels, which places it ahead of countries such as Saudi Arabia, Iran, and Canada. Oil is a non-renewable energy source that is the main source of income for different countries and is also fundamental to the international trade and foreign policy of all countries. However, Venezuela’s daily oil production is much lower than that of the major producers, producing only about 700,000 barrels of crude oil per day.
Although Venezuela has a large amount of oil reserves, its production and exports have been affected by the scarcity of investments, the limitations of the national infrastructure, and the US embargoes implemented in 2019. In 2021, it exported only 1.1% of globally traded crude, a much lower figure than in previous years. The Trump administration imposed sanctions, such as a ban on trading Venezuelan Treasury bonds in US financial markets or doing business with PDVSA. However, in May 2022, Washington lifted some of these restrictions, authorizing the US oil company Chevron to start negotiations with the Venezuelan state-owned PDVSA for the agreement of the terms of future activities in Venezuelan territory.
Despite this, the country’s economic situation remains difficult due to its dependence on oil as its main source of income and the lack of investment in other economic sectors.
