Venezuela: Oil investments expected to rise 55% by 2026
Venezuela's acting president, Delcy Rodriguez, unveiled an ambitious plan to transform the country's energy sector, predicting that investments in the oil sector would see a significant increase of up to 55% by 2026. These projections are supported by a package of radical structural reforms that the government seeks to implement in order to attract foreign capital and revive the struggling oil industry.
Promising figures and plans to transform into a production giant
In remarks made by Rodríguez, who assumed power following the recent political developments and the arrest of Nicolás Maduro on January 3, she explained that the country had successfully signed investment agreements worth $1.4 billion for the current year, a significant increase compared to last year when investments stood at approximately $900 million. During a public consultation session on economic reforms, Rodríguez emphasized: "It is not enough to be the country with the largest proven oil reserves on the planet; we must truly become a productive powerhouse that contributes to the stability of the global energy market.".
A history of fluctuation: between mismanagement and recovery
To understand the significance of this step, one must consider the historical context of Venezuela's oil sector. For years, the industry suffered from the consequences of mismanagement and rampant corruption, leading to a dramatic collapse in production rates. After pumping nearly 3 million barrels per day in the early 2000s, Venezuela's production plummeted to a historic low of just 350,000 barrels per day in 2020. However, indicators have gradually begun to improve, with production recently recovering to around 1.2 million barrels per day, amid concerted efforts to return to pre-crisis levels.
A political and legislative transformation that ends the state's monopoly
Observers and economic analysts link these bold reforms to new US pressure and policies toward Caracas, particularly after the United States showed renewed interest in Venezuelan oil following the change in leadership. US President Donald Trump indicated his support for Rodríguez's steps as long as they remained committed to the path of economic reform.
In a move considered the most significant in modern Venezuelan history, a new oil bill currently before the National Assembly aims to end the state monopoly on the sector. The law would allow private companies registered in Venezuela to independently exploit oil fields without the need for mandatory partnerships with the state-owned oil company, a requirement that has hindered foreign investment for years. Final approval of the law is expected within the next few days, benefiting from the government's absolute majority in parliament following the opposition's boycott of the 2025 legislative elections.
