Venezuelas economic diversification beyond its vast oil reserves is unclear

US Administration Seeks to Restore Venezuela’s Oil Production and Mining Sector

The administration of US President Donald Trump has announced plans to quickly restore Venezuela’s oil production and expand its mining sector following the abduction of President Nicolas Maduro. According to Commerce Secretary Howard Lutnick, Venezuela possesses significant reserves of oil, natural gas, and minerals, including gold.

Venezuela holds the world’s largest proven oil reserves, estimated at 303 billion barrels as of 2023. The country is also a founding member of OPEC (the Organization of the Petroleum Exporting Countries) and has established partnerships with other countries to export its oil. Venezuela’s oil reserves are primarily concentrated in the Orinoco Belt, a vast region in the eastern part of the country.

The US has expertise in refining oil from this region, particularly in Texas and Louisiana. However, production levels have declined due to political instability, mismanagement, and US sanctions on the energy industry. In 2024, Venezuela produced an average of 952,000 barrels per day, with China being the largest buyer of its crude oil.

Venezuela also ranks ninth in the world for natural gas reserves, with approximately 5.5 trillion cubic metres (195 trillion cubic feet) as of 2023. The country possesses the largest official gold reserves in Latin America, valued at over $23 billion.

The US administration has expressed interest in developing Venezuela’s mining sector, which is believed to hold significant untapped resources, including diamonds, nickel, coltan, and copper.

Source: Al Jazeera