During multiple consultative sessions, Vice President and acting President Delcy Rodríguez emphasized transitioning Venezuela from possessing the world’s largest oil reserves to becoming a dominant producer on par with the United States, Russia, and Saudi Arabia. She highlighted the recent milestone of contracting Venezuela’s first natural gas export and linked production growth to social and economic development objectives. The reform upholds state ownership of resources while creating legal certainty and dispute resolution frameworks intended to enhance investor confidence.
Complementing the domestic legal adjustments, the U.S. administration under President Donald Trump authorized the reopening of Venezuelan commercial airspace and granted a general license removing specific sanctions on PDVSA and Venezuelan government-related transactions. The new U.S. rules mandate that payments be routed through U.S.-controlled bank accounts and governed by U.S. law, with prohibitions on transactions involving sanctioned countries. This arrangement reflects Washington’s strategy for financial supervision while allowing operational normalcy in the oil trade.
The reforms and U.S. policy shift occur amid geopolitical turbulence following the U.S.-led operation to detain Nicolás Maduro, with Delcy Rodríguez installed as acting president. Opposition lawmakers and the Venezuelan Communist Party criticized the reforms for expanding ministerial powers and undermining national energy sovereignty. Conversely, PDVSA leadership asserts the new framework strengthens the sector’s legal base and incentivizes capital inflows essential for production increases.
Despite Venezuela’s vast reserves—estimated at over 303 billion barrels—the nation’s crude output remains below potential. In 2025, production reached approximately 1.08 million barrels per day, surpassing recent years but far behind global leaders. The reforms and improved relations with the U.S. envision reversing production decline by stimulating investment, optimizing resource exploitation, and integrating Venezuela more robustly into global oil markets.
This article was curated and published as part of our South American energy market coverage.
