Business Daily What's the future for Venezuelan oil?
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Jan 5, 2026 Gideon Long, a veteran Latin America correspondent, shares his insights on Venezuela's oil situation following recent political upheavals. He discusses the country's vast reserves, their challenging extraction process, and the implications for U.S. oil companies. The conversation dives into the historical context of nationalization, the damage done by sanctions, and the role of China in the oil market. Long highlights the staggering investment needed to revitalize the industry and addresses the skepticism surrounding the potential return of American firms.
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Size Isn't Everything
- Venezuela officially holds about 300 billion barrels, more than Saudi Arabia and ~17% of global reserves.
- Much of that oil is heavy crude in the remote Orinoco Basin and needs extensive processing.
Heavy Crude Limits Market Access
- Venezuela's oil is very heavy and located in jungle, making extraction and refining harder and more costly.
- Only a few refineries worldwide can process that crude, limiting buyers and customers.
Gulf Refiners Created A Natural Trade Tie
- Historically the US Gulf Coast refiners bought large volumes because they could process heavy Venezuelan crude.
- That built a practical trade link where the US sourced nearby heavy crude instead of Middle Eastern or Russian oil.