WILLEMSTAD — Venezuela possesses the largest proven oil reserves on Earth, with an estimated over 300 billion barrels of crude beneath its soil, far surpassing most other oil-rich nations and accounting for roughly one-fifth of global reserves. However, the country’s daily oil output remains a small fraction of its potential, highlighting a stark contrast between resource wealth and actual production.
According to the Organization of the Petroleum Exporting Countries (OPEC), Venezuela’s proven oil reserves stand at approximately 303 billion barrels, ahead of second-place Saudi Arabia with around 267 billion barrels. In comparison, the United States — widely recognised as the world’s largest oil producer — holds around 45 billion barrels of proven reserves.
Despite this vast underground resource base, production figures tell a very different story. International Energy Agency data indicate that Venezuelan oil output has collapsed to under 1 million barrels per day (bpd) — barely a fraction of the output at the country’s peak in the late 1990s. By contrast, the United States pumps more than 12 million barrels per day, supported by advanced technology, robust infrastructure, and large-scale investments in shale and conventional oil production.
Experts say this disparity is rooted in a combination of factors. Venezuela’s crude is predominantly extra-heavy oil from the vast Orinoco Belt, which is technically challenging and costly to extract and refine compared with lighter grades favoured worldwide. Years of underinvestment, declining infrastructure, mismanagement at the state oil company PDVSA and international sanctions have further deepened the gap between reserve figures and output.
This dynamic has important implications for the global energy market. Reserves represent what is available beneath the surface — the theoretical potential of a country’s resource base — while production reflects what is actually being brought to market and consumed each day. In Venezuela’s case, vast reserves have not translated into commensurate output, leaving the country sidelined from its former role as a major global exporter.
The current geopolitical developments in Venezuela, including renewed U.S. engagement and planned investment incentives, have sparked speculation that production could eventually rise if foreign companies return and sanctions are reshaped. However, analysts caution that restoring Venezuela’s oil industry to earlier levels would require massive investment, technological input and time — and even then may not immediately alter the global oil supply picture.
For Curaçao and other Caribbean partners, these trends highlight the strategic importance of oil resources in regional geopolitics. With global markets continually seeking stability and reliable supply, Venezuela’s enormous but under-utilised oil wealth will likely remain central to energy discussions — but not without significant political and economic reform.