U.S. Interior Secretary Doug Burgum recently led a delegation of oil and mining executives to Venezuela to discuss the investment potential in the country’s underdeveloped oil and gas reserves. At a conference in Houston, Burgum emphasized the “opportunity” in Venezuela’s abundant oil, natural gas, and precious metal resources.
Similarly, U.S. Energy Secretary Chris Wright highlighted the alignment between the interim government and the U.S. administration regarding the growth of Venezuelan production. Despite the optimistic tone from U.S. officials, skepticism remains among oil and gas industry leaders due to various challenges in Venezuela, including safety issues, political instability, and the substantial investment needed to revamp the country’s aging oilfields.
President Donald Trump has been urging American oil and gas companies to invest in Venezuela following the removal of former President Nicolás Maduro, as the country boasts the world’s largest crude oil reserves. However, Venezuela’s oil production has declined significantly over the years, with only 900,000 barrels per day extracted in 2025 compared to the peak of 3.7 million barrels per day in 1970.
According to Rystad Energy, Venezuela requires around $183 billion in capital investment by 2040 to restore oil production to three million barrels per day. Despite these figures, the expected revitalization of Venezuela’s energy sector has not materialized, leading to a sense of unfulfilled expectations within the industry.
Some companies, like Shell and Chevron, are contemplating expanding their operations in Venezuela, but they emphasize the need for regulatory stability and legal reforms to create a conducive environment for investments. Other executives, such as those from ExxonMobil and ConocoPhillips, remain cautious due to uncertainties surrounding policy durability and political transitions.
Venezuela’s heavy crude oil production has implications for global markets, with Canadian heavy oil prices being impacted by developments in the South American nation. Foreign investors demand greater guarantees and policy certainty from Venezuela to compensate for past expropriations and contract disputes.
Nobel Peace Prize laureate MarÃa Corina Machado presented a plan at the CERAWeek conference in Houston to attract foreign oil companies by offering long-term leases and privatizing the oil and gas sector if elected to lead Venezuela. While the future of Venezuela’s energy industry remains uncertain, Canadian oil industry experts believe there is currently no immediate threat to their market.
