El Palito refinery in Puerto Cabello, Venezuela, on Dec. 18, 2025. Jesus Vargas/Getty Images
Venezuela holds the world’s largest proven oil reserves, yet its petroleum industry—once among the most productive on earth—has been reduced to a fraction of its former capacity after years of mismanagement, underinvestment, and international sanctions.
The long-running gap between Venezuela’s vast oil wealth and its collapsing production has taken on new urgency after U.S. President Donald Trump announced on Jan. 3 that U.S. forces had captured Venezuelan President Nicolás Maduro and that Washington would temporarily run the country while U.S. oil companies move in to rebuild its failing energy infrastructure.
