Many Steps Needed for Venezuelan Rebound
Venezuela took center stage in early January when U.S. forces removed President Nicolás Maduro from power, triggering a flood of speculation and market commentary about the country’s vast oil reserves and the potential for reviving its now-moribund upstream and refining sectors.
Venezuela was once a critical supplier of heavy sour crude to Gulf Coast refineries, providing more than 1 MMb/d in the late 1990s and early 2000s before Venezuelan production entered a long period of decline. Today, the country produces less than 1 MMb/d of crude oil, barely one-quarter of where it was in the late ’90s at around 3.5 MMb/d.
All of this is the focus of our latest Drill Down Report, which starts with a more detailed look at the history of Venezuela’s oil sector and the heavy crude it produces. It then examines the country’s refining industry, what a return of Venezuelan barrels might mean for the global market, the critical role of diluent in future plans, and the many steps needed to effect a long-term, sustainable recovery.
Key takeaways from the report include:
Venezuela’s Oil Industry Could be Poised For a Sharp Recovery, But It Will Take Time
Extra-Heavy Crude Oil Found in the Country’s Orinoco Belt is Thick With Potential, Pitfalls
Rebound in Venezuelan Production Would Test U.S. Refiners’ Appetite for Canadian Crude
Venezuela Remains Reliant on Diluent to Boost Output, Opening Market for U.S. Suppliers
From Infrastructure Fixes to Hiring Workers, Revitalizing the Industry Will Take Many Forms
“Round and Round” is included in RBN Energy’s 2026 Drill Down report series, a suite of reports covering many of the key issues expected to impact the markets for crude oil, natural gas and natural gas liquids. Drill Down reports are part of RBN Backstage Pass™ premium resources that also include Blog Archive Access, Spotcheck Indicators, Market Fundamentals Webcasts, Get-Togethers and more. By subscribing to RBN’s Backstage Pass™ Premium Services, you plug into our network and get direct access to our premium resources.
