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Country Analysis Brief: Venezuela
U.S. Energy Information Administration · 2024-02-08
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Country Analysis Brief:
Venezuela
Last Updated: February 8, 2024
Next Update: February 2026
www.eia.gov
U.S. Department of Energy
Washington, DC 20585
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The U.S. Energy Information Administration (EIA), the statistical and analytical agency within the
U.S. Department of Energy (DOE), prepared this report. By law, our data, analyses, and forecasts are
independent of approval by any other officer or employee of the U.S. Government. The views in this
report do not represent those of DOE or any other federal agencies
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February 2024
Overview
Table 1. Venezuela’s energy overview, 2021
Crude oil
and other Natural Other
Coal Nuclear Hydro Total
petroleum gas renewables
liquids
Primary energy
0.66 0.61 0.00 -- 0.53 0.00 1.81
consumption (quads)
Primary energy
consumption 36.7% 33.8% 0.1% -- 29.4% 0.0% 100.0%
(percentage)
Primary energy
1.35 0.61 0.00 -- 0.51 0.03 2.50
production (quads)
Primary energy
53.9% 24.5% 0.2% -- 20.4% 1.0% 100.0%
production (percentage)
Electricity generation
10.04 23.61 -- -- 61.00 0.10 94.75
(terawatthours)
Electricity generation
10.6% 24.9% -- -- 64.4% 0.1% 100.0%
(percentage)
Data source: U.S. Energy Information Administration, International Energy Statistics; the International Energy Agency, World
Energy Statistics 2022; and Energy Institute, Statistical Review of World Energy 2023
Note: Quads=quadrillion British thermal units. Other renewables include solar and wind.
• Several factors have severely hampered Venezuela's energy sector, most notably
government mismanagement, international sanctions, and the country's economic
crisis. These factors led to a lack of investment and maintenance in the energy sector
and a deteriorating infrastructure. 1 As such, Venezuela's total energy production
decreased by an annual average rate of 8.2% from 2011 to 2021. Petroleum and other
liquids accounted for most of the energy production decrease. 2
• Since 2005, the United States has imposed sanctions on Venezuelan individuals and
entities for criminal, antidemocratic, or corrupt behavior. The U.S. government began to
grant exemptions from sanctions on Venezuela starting in 2022, allowing more crude oil
from Venezuela to enter the global market.
• U.S. crude oil imports from Venezuela stopped shortly after the United States imposed
sanctions on state oil company Petróleos de Venezuela SA (PDVSA) in January 2019. In
November 2022, the U.S. Department of the Treasury’s Office of Foreign Assets Control
(OFAC) granted Chevron waivers to resume exporting crude oil from its joint venture
operations in Venezuela to U.S. Gulf Coast refineries, which resumed in January 2023. 3
In addition, OFAC granted Trinidad and Tobago a two-year license to collaborate with
PDVSA on the development of an offshore natural gas field in January 2023. OFAC
amended the license in October 2023 to allow cash payments for the natural gas.4 5
U.S. Energy Information Administration | Country Analysis Brief: Venezuela 1
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• In October 2023, OFAC issued licenses easing some sanctions on Venezuela through
April 2024 in exchange for assurances that Venezuela’s government would allow
opposition candidates to run in the elections. Eased restrictions allow for the sale of
Venezuela’s crude oil to the United States, payments to PDVSA, and investment in new
oil and natural gas projects, subject to certain conditions. Furthermore, the United
States removed restrictions on the secondary trading of certain Venezuelan bonds as
well as PDVSA debt and equity. 6
• We expect that Venezuela’s crude oil output growth will be limited following the lifting
of sanctions. Much of Venezuela's crude oil production capacity and infrastructure have
suffered from a decade-long lack of capital and regular maintenance. Chevron's earlier
exemption increased its production to 135,000 barrels per day (b/d) in 2023, and we
expect Chevron's output in Venezuela to reach 200,000 b/d by the end of 2024.
According to IPD Latin America, ventures operated by ENI, Repsol, and Maurel & Prom
could increase production by an additional 50,000 b/d in the near term. As a result, we
estimate that these projects will increase Venezuela's total output to around 900,000
b/d by the end of 2024. 7
• Venezuela's restrictive economic policies (Figure 3) have resulted in a decrease in
inflation-adjusted GDP per capita, which has led to a decrease in energy consumption
(Figure 4). Venezuela has the refining capacity to meet its domestic demand, but the
country’s refineries are in poor condition. A crippled downstream sector, years of
divestments, and poor maintenance have led to a severe shortage of transportation
fuels in Venezuela. Because of U.S. sanctions, refined fuel import capabilities have been
limited, restraining the availability of refined fuels for consumption in Venezuela. Yet,
since 2020, petroleum imports from Iran have lessened gasoline shortages. Since the
end of 2022, PDVSA has been collaborating with Iran on repair and maintenance work at
the state-owned refineries. 8
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Figure 1. Map of Venezuela
Data source: U.S. Central Intelligence Agency, CIA World Factbook—Venezuela
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Figure 2. Total primary energy consumption in Venezuela by fuel type, 2021
percentage of total energy consumption
natural gas
34%
petroleum and
other liquids
37%
hydropower
29%
Data source: U.S. Energy Information Administration, International Energy Statistics
Figure 3. Index of Economic Freedom, 2012–2022
0=least free; 100=most free
100
90
80
70
60
50
40
30
20
10
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Venezuela world
Data source: The Heritage Foundation
Note: The Heritage Foundation assesses economic freedom using 12 quantitative and qualitative factors
organized into four broad categories, or pillars, of economic freedom: rule of law, government size,
regulatory efficiency, and open markets. Each of these categories' 12 economic freedoms is graded
on a scale of 0 to 100. The overall score of a country is calculated by averaging these 12 economic
freedoms, with equal weight given to each.
4
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Figure 4. Venezuela’s total primary energy consumption and inflation-adjusted GDP per capita, 2011–
2021
quadrillion British thermal units constant 2015 international dollars
4.0 $25,000
3.5
$20,000
3.0
energy consumption, left y-axis
2.5
$15,000
2.0
$10,000
1.5
inflation-adjusted GDP per capita, right y-axis
1.0
$5,000
0.5
0.0 $0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Data source: U.S. Energy Information Administration, International Energy Statistics
Note: An international dollar would buy the same amount of goods and services in the cited
country that a U.S. dollar would buy in the United States. This term is frequently used with data
on purchasing power parity.
Petroleum and Other Liquids
• Venezuela had the world's largest proven crude oil reserves in 2023 with approximately
303 billion barrels (Figure 5), accounting for approximately 17% of global reserves
(Figure 6). Despite the sizeable reserves, Venezuela produced 0.8% of total global crude
oil in 2023. Most of Venezuela's proven oil reserves are extra-heavy crude oil from the
Orinoco Belt. The extraction of extra-heavy crude oil requires a higher level of technical
expertise, which international oil companies possess but their involvement has been
limited by international sanctions. Furthermore, budgetary constraints at Venezuela's
state oil company PDVSA and a lack of qualified technical personnel and foreign direct
investment have all hampered Venezuela’s oil and natural gas development.
• PDVSA is the largest source of revenue for the Venezuelan government. When
Venezuela nationalized its oil industry in the 1970s, PDVSA was formed. The
government gave the company significant autonomy until the 1990s, when it took direct
control of PDVSA. By imposing a 40%–45% levy on PDVSA, the Venezuelan state has
used the state oil company as a revenue stream to fund a variety of social programs,
particularly under Presidents Chavez and Maduro. State control of PDVSA has reduced
profit reinvestment, contributing to declining petroleum production over the last
decade. 9
• In 2023, Venezuela produced 742,000 b/d of crude oil, a 70% cumulative decline from
production levels in 2013. Yet, for the first time in a decade, Venezuela’s crude oil
production increased by 13% in 2021 and 18% in 2022 (Figure 7). The increase was the
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result of a few factors, including assistance from Iran in the form of shipments of
diluents required for transporting and processing Venezuela’s extra-heavy crude oil,
technical assistance from China National Petroleum Corporation (CNPC) on specific
fields, and the partial return of some local oil field service providers after PDVSA settled
a portion of its debt, allowing some workover and maintenance rigs to operate and
boost production levels (Figure 8). The recent increase suggests a growth trend, with
Chevron playing a key role. Following the waiving of some sanctions, Chevron has
increased naphtha and condensate shipments to provide diluent for the project it jointly
operates with PDVSA. 10 We expect a moderate increase in Venezuela’s crude oil
production in 2024, but increased power outages and limited diluent are risk factors.
• PDVSA owns and operates Venezuela’s five refineries, which have a total nameplate
processing capacity of 1.46 million b/d as of 2022 (Table 2). Much like the rest of the
sector, the midstream is facing significant challenges as a result of ongoing
underinvestment and mismanagement. 11 The firing of nearly 20,000 highly skilled
workers in the early 2000s, combined with a reported tendency to hire based on
government loyalty rather than technical skill, continues to affect operations, resulting
in a lack of high-level expertise. Venezuela's extra-heavy crude must be processed by
specialized refineries, making development economically, environmentally, and
technologically costly. 12 Venezuela's Cardon and Amuay refineries are part of the
Paraguana Refining Center, which is one of the world's largest but has been operating at
a fraction of capacity for the last decade because of lack of maintenance. After two
crude oil distillation units (CDUs) were shut down because of a fire and a lack of
feedstock, the entire complex was processing at about 10% of its nameplate capacity as
of October 2023. 13 As a result, distribution issues at the Paraguana Refining Center
dispatch center hampered the supply of gasoline and diesel to the domestic market. 14
• In October 2023, the U.S. District Court for the District of Delaware started a process to
sell three refineries owned by Citgo parent company PDV Holdings, a U.S. subsidiary of
PDVSA. Together, the three refineries account for about 5% of the United States’
refining capacity. Citgo's refinery assets have a high coking capacity and can handle
relatively heavy crude oil slates. All three refineries processed imported crude oil
supplied by PDVSA. However, since 2019, the Citgo refineries have been processing
imported crude oil from other countries, primarily Colombia and Canada. The sale of
Venezuela's PDV Holdings' refining assets follows OFAC's decision to temporarily lift
most energy-related sanctions against the country as part of an electoral process
agreement. 15 President Nicolas Maduro and the Venezuelan opposition oppose the
auction. Venezuela appealed the auction, which was denied by the U.S. Supreme Court
in January 2024. The final decision on the winning bids is expected in the coming
months, pending approval from the U.S. Department of the Treasury. 16
• The declining crude oil production and operational refining capacity of PDVSA is causing
widespread shortages of gasoline, diesel, and other oil products in the domestic market.
According to IPD Latin America estimates, Venezuela's refinery throughput has been less
than 300,000 b/d, or roughly one-fifth of its nameplate capacity. 17 Venezuela has
worked with Iran to supply fuel as well as refining materials, spare parts, and technicians
to restart the refineries. China is also assisting Venezuela in repairing and restarting its
refineries by supplying catalysts and refinery parts. 18
• Venezuela primarily relied on crude oil-for-gasoline swaps with international oil
companies such as Repsol in Spain and Rosneft in Russia to meet its fuel demand.
However, the U.S. sanctions have complicated these crude oil-for-gasoline
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arrangements. In response to U.S. sanctions, Venezuela reduced naphtha imports
between 2020 and 2022, shifting from synthetic crude oils to blended heavy and light
oils. Venezuela began to import naphtha and condensates in 2023 following the waiving
of some U.S. sanctions (Figure 17).
• As of 2023, Venezuela had 25 operational pipelines with a total capacity of 8,969,985
barrels of oil equivalent per day and a total length of 2,139 miles (Table 3). Venezuela
relies on an aging pipeline network to transport oil from wells to refineries, with many
pipelines estimated to be more than 50 years old. This aging infrastructure is a challenge
made more difficult by Venezuela’s extra-heavy crude oil. PDVSA estimates that
updating pipeline infrastructure alone would require around $8 billion in investment to
return oil production to late 1990s levels. Although PDVSA no longer reports spills, the
head of Venezuela's Unitary Federation of Petroleum and Gas Workers estimates that
oil spills occur almost daily in some states. 19
• Venezuelans voted on December 3, 2023, on five issues relating to Guyana's disputed
Essequibo region. The most contentious questions gave the option to oppose the
International Court of Justice's (ICJ) jurisdiction over the territorial dispute and proposed
incorporating the disputed territory into a new Venezuelan state. Following the
referendum, Venezuelan President Nicolas Maduro directed PDVSA to issue crude oil
extraction licenses in Essequibo and ordered foreign oil companies operating under
Guyanese concessions to stop operations within three months. Guyana's President,
Irfaan Ali, responded by placing his military on high alert and contacting allies and
regional partners to activate defense agreements to protect Essequibo, which accounts
for two-thirds of the country. To settle the dispute peacefully, Presidents Maduro and
Ali met on December 14, 2023, and signed a joint declaration in which both countries
agreed to "not threaten or use force against one another in any circumstances" and
"refrain, whether by words or deeds, from escalating any conflict or disagreement
arising from any controversy between them." Following a meeting on January 25, 2024,
Venezuela's and Guyana's foreign ministers pledged to maintain peace and work toward
a diplomatic solution to their dispute over the oil-rich Essequibo region. 20 21 22
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Figure 5. Venezuela’s crude oil proved reserves ranking, 2023
billion barrels
Venezuela (OPEC)
Saudi Arabia (OPEC)
Iran (OPEC)
Canada
Iraq (OPEC)
United Arab Emirates (OPEC)
crude oil
Kuwait (OPEC)
proved
reserves
Russia
United States
Libya (OPEC)
- 50 100 150 200 250 300
Data source: Oil & Gas Journal, 2023 Worldwide Reserves and Production
Figure 6. Venezuela’s crude oil and natural gas reserves, 1983–2023
share of global total, percentage
20%
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023
crude oil reserves natural gas reserves
Data source: U.S. Energy Information Administration, International Energy Statistics; Oil & Gas Journal,
2022 & 2023 Worldwide Reserves and Production
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Figure 7. Venezuela’s total petroleum and other liquids production and consumption, 2011–2023
thousand barrels per day
3,000
2,500
2,000
1,500
1,000
consumption production
500
0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Data source: U.S. Energy Information Administration, International Energy Statistics and
Short-Term Energy Outlook
Figure 8. Venezuela’s crude oil rig count and crude oil production, 2013–2023
thousand barrels per day number of rigs
3,000 80
crude oil rig count, right y-axis
70
2,500
60
2,000
50
1,500 40
30
1,000
crude oil production, left y-axis
20
500
10
0 0
Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23
Data source: U.S. Energy Information Administration, International Energy Statistics, and Baker Hughes
Note: Crude oil rig count data are through October 2023; crude oil production data are through August 2023.
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Table 2. Venezuela’s oil refineries
Nameplate crude oil
distillation capacity
Refinery Operator Location
(thousand barrels per
day)
Centro de Refinacion Paraguana Petroleos de Venezuela SA 940 Amuay and Cardon, Falcon
Puerto de la Cruz,
Refineria Puerto la Cruz Petroleos de Venezuela SA 310
Anzoategui
Refineria El Palito Petroleos de Venezuela SA 187 Puerto Cabello, Carabobo
Refineria Bajo Grande Petroleos de Venezuela SA 16 Bajo Grande, Zulia
Refineria San Roque Petroleos de Venezuela SA 5 San Roque, Anzoategui
Total 1,458
Data source: Oil & Gas Journal, 2022 Worldwide Refining Survey
Table 3. Venezuela’s operating crude oil pipelines
Capacity
(thousand barrels
Name Operator Start location End location
of oil equivalent
per day)
Puerto La Cruz,
Traviaso-Naricual Oil Pipeline Petroleos de Venezuela SA 942 El Tejero, Monagas
Anzoátegui
Patio de Tanques
PT Oficina-José Palmichal oil Barcelona,
Petroleos de Venezuela SA 856 Oficina, El Tigre,
pipeline Anzoátegui
Anzoátegui
Barcelona,
Traviaso-TAEJ Oil Pipeline Petroleos de Venezuela SA 734 El Tejero, Monagas
Anzoátegui
Barcelona,
ZPS-JPS Oil Pipeline Petroleos de Venezuela SA 632 Zuata, Anzoátegui
Anzoátegui
Potrerito, Barcelona,
ERB-II-TAEJ Oil Pipeline Petroleos de Venezuela SA 587
Anzoátegui Anzoátegui
Ule-Amuay 2 Oil Pipeline Petroleos de Venezuela SA 577 Tía Juana, Zulia Carirubana, Falcón
Ule-Amuay Oil Pipeline Petroleos de Venezuela SA 555 Tía Juana, Zulia Carirubana, Falcón
Patio de Tanques
PT Oficina-Puerto la Cruz Oil Puerto La Cruz,
Petroleos de Venezuela SA 544 Oficina, El Tigre,
Pipeline Anzoátegui
Anzoátegui
Patio de Tanques
Morichal,
EPM-I-PT Oficina Oil Pipeline Petroleos de Venezuela SA 391 Oficina, El Tigre,
Monagas
Anzoátegui
COPEM-PT Oficina Oil Cogollal, El Tigre,
Petroleos de Venezuela SA 384
Pipeline Anzoátegui Anzoátegui
Bachaquero-Puerto Miranda Puerto Miranda,
Petroleos de Venezuela SA 374 Bachaquero, Zulia
Oil Pipeline Zulia
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Puerto Miranda-Cardón Oil Puerto Miranda, Punta Cardón,
Petroleos de Venezuela SA 338
Pipeline Zulia Falcón
Bachaquero-Puerto Miranda Puerto Miranda,
Petroleos de Venezuela SA 290 Bachaquero, Zulia
2 Oil Pipeline Zulia
Patio de Tanques
Barcelona,
CIJAA-PT Oficina Oil Pipeline Petroleos de Venezuela SA 220 Oficina, El Tigre,
Anzoátegui
Anzoátegui
Silvestre Tank
Mata Larga-PT Silvestre Oil
Petroleos de Venezuela SA 208 Las Monas, Apure Farm, Torunos,
Pipeline
Barinas
Patio de Tanques
PT Oficina-Puerto la Cruz 2 Oil Puerto La Cruz,
Petroleos de Venezuela SA 199 Oficina, El Tigre,
Pipeline Anzoátegui
Anzoátegui
Lagunillas-La Salina Oil Terminal La Salina,
Petroleos de Venezuela SA 183 Lagunillas, Zulia
Pipeline Cabimas, Zulia
Silvestre Tank
PT Silvestre-El Palito Oil
Petroleos de Venezuela SA 183 Farm, Torunos, El Palito, Carabobo
Pipeline
Barinas
ERB-II-Puerto la Cruz Oil Potrerito, Puerto La Cruz,
Petroleos de Venezuela SA 171
Pipeline Anzoátegui Anzoátegui
Punta de Palma-Puerto Punta de Palma, Puerto Miranda,
Petroleos de Venezuela SA 148
Miranda Oil Pipeline Zulia Zulia
Potrerito,
Traviaso-ERB-II Oil Pipeline Petroleos de Venezuela SA 147 El Tejero, Monagas
Anzoátegui
PT Oficina-Puerto la Cruz 3 Oil San Joaquin, Puerto La Cruz,
Petroleos de Venezuela SA 145
Pipeline Anzoátegui Anzoátegui
Potrerito,
ERB-II-Anaco Oil Pipeline Petroleos de Venezuela SA 73 Anaco, Anzoátegui
Anzoátegui
Patio de Tanques
PT Oficina-Anaco Oil Pipeline Petroleos de Venezuela SA 73 Oficina, El Tigre, Anaco, Anzoátegui
Anzoátegui
PDVSA Centro
La Victoria-Las Monas Oil
Petroleos de Venezuela SA 14 Operacional La Las Monas, Apure
Pipeline
Victoria, Apure
Total 8,970
Data source: Global Oil Infrastructure Tracker, Global Energy Monitor, May 2023
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Figure 9. Map of Venezuela's refineries and pipelines
Data source: Global Oil Infrastructure Tracker, Global Energy Monitor, May 2023; Global Gas Infrastructure Tracker, Global
Energy Monitor, December 2023; and Oil & Gas Journal, 2022 Worldwide Refining Survey
Natural Gas and LNG
• Venezuela has significant natural gas reserves, accounting for 73% of total natural gas
reserves in South America and totaling 195 trillion cubic feet (Tcf) as of 2023. 23 The
majority of the country's natural gas reserves are associated with crude oil; around 80%
of produced natural gas is associated gas produced as a by-product of oil production.
Venezuela's natural gas reserves are still underutilized, and a large portion of the
country's current natural gas output is used to supplement the output of mature oil
fields rather than sold to generate revenue. 24 A portion of this natural gas (about 30%) is
reinjected into oil fields to increase crude oil production. However, the drop in oil
production in recent years has limited natural gas output. Venezuela lacks natural gas
infrastructure, particularly for reinjection into oil fields, for natural gas storage and
distribution, and for residential supply.
• Venezuela's natural gas production has historically been limited in comparison to its
potential, owing to a poor investment climate, a lack of adequate infrastructure
development to monetize the natural gas, a lack of a domestic demand market, and an
inability to develop natural gas projects for export. After peaking at 1.12 trillion cubic
feet (Tcf) in 2001, Venezuela’s natural gas production halved to 563 billion cubic feet
(Bcf) by 2021. 25
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• Natural gas in Venezuela is primarily used for domestic purposes. 26 Venezuela's
consumption of natural gas has fluctuated over the last decade. Demand increased by
12% in 2015 to 936 Bcf, mainly for electric power generation as utilization of
hydropower facilities declined. Venezuela's natural gas consumption fell by 7% per year
on average from 2016 to 2021, reaching 563 Bcf in 2021 because of declining economic
activity and lower power demand.
• Given the limited ability to monetize natural gas production produced alongside oil,
much of Venezuela's natural gas production is flared, making the country one of the
world's largest natural gas flarers. Flaring is a method of relieving pressure caused by
flammable natural gas during pumping. Although flaring is sometimes necessary to
reduce the risk of explosions at oil wells, it is also a major source of greenhouse gas
emissions. According to a 2021 report from the World Bank-supported Global Gas
Flaring Reduction Partnership, Venezuela’s flaring intensity increased by a factor of four
between 2012 and 2021, and various industry estimates point to natural gas flaring of
around 706 Bcf per year in 2022, more than Venezuela’s total amount of monetized
natural gas. Venezuela’s energy sector has lost much of its capacity to collect and use
natural gas, preferring instead to burn it off.
• Venezuela’s government regulates natural gas prices, and concerns exist about the
pricing structure and regulations for this market. Venezuelans pay below market rates
because of price subsidies provided by the Venezuelan government to support domestic
natural gas demand. However, investment is limited by these below-market prices,
which have remained low since 2016.
Figure 10. Venezuela’s dry natural gas production and consumption, 2011–2021
billion cubic feet
1,200
1,000
consumption
800
production
600
400
200
0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Data source: U.S. Energy Information Administration, International Energy Statistics
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Table 4. Venezuela’s operating natural gas pipelines
Capacity
Name Operator (billion cubic Start location End location
feet per year)
Anaco-Barquisimeto Gas Petroleos de
354 Anaco, Anzoátegui Barquisimeto, Lara
Pipeline Venezuela SA
Petroleos de Maremare,
Muscar-Soto Gas Pipeline 292 Muscar, Monagas
Venezuela SA Anzoátegui
Santa Bárbara-Aguasay 2 Petroleos de Santa Bárbara,
292 Aguasay, Monagas
Gas Pipeline Venezuela SA Monagas
Anaco-Puerto Ordaz Gas Petroleos de
225 Anaco, Anzoátegui Puerto Ordaz, Bolívar
Pipeline Venezuela SA
Anaco-Puerto La Cruz Gas Petroleos de Puerto La Cruz,
219 Anaco, Anzoátegui
Pipeline Venezuela SA Anzoátegui
Santa Bárbara-Aguasay Gas Petroleos de Santa Bárbara,
146 Aguasay, Monagas
Pipeline Venezuela SA Monagas
Petroleos de
Ule-Amuay Gas Pipeline 91 Ulé, Zulia Amuay, Falcón
Venezuela SA
Total 1,620
Data source: Global Energy Monitor, Latin America Energy Portal, January 2023
Coal
• Venezuela holds South America’s fourth-largest coal reserves, with 806 million short
tons in 2021.27 The main coalfields of Venezuela are in the western Zulia State, which
borders Colombia. In comparison to oil and natural gas, coal plays a minor role in
Venezuela’s energy mix, accounting for 0.2% of total energy production and 0.1% of
total energy consumption.
• Venezuela's coal industry has faced challenges such as outdated infrastructure and
limited investment, which has affected production. Venezuela's coal production fell by
an average annual rate of 16% from 2001 to 2021 after peaking at nearly 8.7 million
short tons in 2000. Venezuela was the fourth-largest coal producer in South America as
of 2021, with 174 thousand short tons. Venezuela's coal production is entirely
bituminous. 28
• Venezuela’s coal was mostly used for domestic consumption, particularly in industrial
processes. 29 Coal consumption briefly rose from 56,000 short tons in 2005 to a peak of
319,000 short tons in 2012. Since then, Venezuela’s economic decline brought coal
consumption down to 67,000 short tons in 2021, close to where it started less than two
decades prior. 30
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Figure 11. Venezuela’s coal production and consumption, 2011–2021
thousand short tons
3,500
3,000
2,500
2,000
1,500
1,000
production
500
consumption
0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Data source: U.S. Energy Information Administration, International Energy Statistics
Biofuels
• Venezuela does not produce or consume biofuels.
Electricity
• Venezuela's electricity generation is primarily reliant on hydropower, which supplies
64% of the country’s electricity as of 2021. Because of the grid's reliance on
hydropower, it is vulnerable to fluctuations in water availability and droughts.
Furthermore, widespread concern surrounds hydropower overutilization and
overexertion of existing facilities. Venezuela relies on six operating hydroelectric plants
with a total capacity of 16,010 megawatts (MW). The largest plant is Central
Hidroeléctrica Guri in Orinoco, which accounts for 64% of Venezuela’s hydroelectric
capacity (Table 5). Venezuela also relies on natural gas and petroleum for electricity
generation, which contributed 25% and 11%, respectively, of the country’s total
electricity generation in 2021 (Figure 12).
• Venezuela relies on the state-owned Corporación Eléctrica Nacional (CORPOELEC) for its
electricity. CORPOELEC was established in 2007 to consolidate the electric power sector
under state ownership following the restructuring of the sector, which merged the 14
previous power companies. CORPOELEC oversees the entire electricity supply chain and
owns all of Venezuela's major power companies. Its operations encompass generation,
transmission, distribution, and trading. 31
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• Venezuela's electricity generation peaked at 120 billion kilowatthours (kWh) in 2013
after rising steadily for over three decades. Since then, Venezuela's electricity
generation has decreased by an average annual rate of 2% between 2014 and 2021,
reaching 95 billion kWh in 2021 (Figure 13). A variety of factors contribute to the decline
in electricity generation, including out-of-date infrastructure, poor maintenance,
insufficient investment, a lack of market incentives, government control, CORPOELEC's
declining professional capacity, and a failure to anticipate and respond to challenges
posed by the existing system's generation mix.
• Data from the World Economic Forum suggest that Venezuela’s electrification rate is
99% as of 2019, higher than the rest of Central America’s and South America’s average
rate (Figure 14). However, according to an analysis of electricity usage, Venezuela's
rural-urban divide has widened, as large swaths of the country continue to experience
daily power outages, undermining the potential for economic activity. According to the
study, these power outages are the result of a government policy of cutting power to
rural areas to ensure a steady supply for urban areas to avoid protests.32
• Frequent and lengthy power outages have crippled Venezuela's electricity system in
recent years. The prolonged power outages have serious humanitarian consequences in
healthcare, water supply, and public transportation, and they have also caused
disruptions to industry, the commercial and retail sectors, and oil production. The
power crisis worsened in 2019, with a nationwide blackout between March 7 and March
14 that affected all 23 states, Caracas, and the neighboring Brazilian state of Roraima.
State-enforced power rationing has become common, particularly in areas outside of
Caracas, and the number of blackouts in Venezuela increased by 22% between 2021 and
2022.33
• Fuel shortages, including natural gas and diesel, hampered power plant operation,
furthering the challenges in electricity generation.
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Figure 12. Venezuela’s electricity generation supply, 2021
percentage of total electricity generation
other renewables crude oil and other
0.1% petroleum liquids
11%
natural gas
25%
hydropower
64%
Data source: U.S. Energy Information Administration, International Energy Statistics, and
International Energy Agency, Electricity Information 2022
Note: Other renewables include solar and wind sources.
Figure 13. Venezuela’s electricity generation by source, 2011–2021
billion kilowatthours
140
120
100
80 fossil fuels
60
40
hydroelectricity
20
0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Data source: U.S. Energy Information Administration, International Energy Statistics
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Figure 14. Venezuela’s electricity access and infrastructure, 2019
percentile rank, 0%=lowest–100%=highest
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Electrification rate Electricity infrastructure Electric power transmission and
distribution losses
Venezuela Central and South America
Data source: World Economic Forum Global Competitiveness Index
Note: Central and South America is an average that contains Argentina, Bolivia, Brazil, Barbados, Chile,
Colombia, Costa Rica, Dominican Republic, Ecuador, Guatemala, Honduras, Haiti, Jamaica, Nicaragua,
Panama, Peru, Paraguay, El Salvador, Trinidad and Tobago, and Venezuela.
Table 5. Venezuela’s operating hydroelectric plants
Capacity
Name Owner Start year Type Location
(megawatts)
Central Hidroeléctrica Corporación Eléctrica Conventional
1986 10,200 Orinoco, Bolívar
Guri Nacional SA storage
Central Hidroeléctrica Corporación Eléctrica Conventional San Félix, Caroní,
1996 2,850
Macagua 2 Nacional SA storage Bolivar
Central Hidroeléctrica Corporación Eléctrica Conventional Puerto Ordaz, Caroní,
2003 2,160
Caruachi Nacional SA storage Bolivar
Central Hidroeléctrica Corporación Eléctrica Conventional San Félix, Caroní,
1959 480
Macagua 1 Nacional SA storage Bolivar
Central Hidroeléctrica Corporación Eléctrica Conventional
1973 240 Bolívar, Barinas
José Antonio Páez Nacional SA storage
Central Hidroeléctrica
Corporación Eléctrica Conventional Alberto Arvelo
Juan Antonio Rodríguez 1986 80
Nacional SA storage Torrealba, Barinas
Domínguez
Total 16,010
Data source: Global Energy Monitor, Global Hydropower Tracker, May 2023
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Energy Trade
• Prior to the United States imposing sanctions on Venezuela, the United States was the
largest importer of Venezuela’s crude oil. Venezuela’s heavy crude oil is well suited for
U.S. refineries, particularly those along the Gulf Coast. Most of the remaining crude oil
was destined for India, China, and Europe. Venezuela has seven crude oil export loading
points, in practice; however, most of its crude oil exports are routed through the Puerto
Jose terminal, which is located offshore of the Jose industrial complex in northeastern
Venezuela. Prior to the full sanction imposition in 2019, the terminal handled
approximately 90% of Venezuela's crude oil exports.
• Since the 2019 sanctions, a significant portion of Venezuela’s crude oil exports have
been part of oil-for-loans arrangements, which are debt repayments rather than PDVSA
receiving actual payments for crude oil deliveries. Notably, a significant portion of
Venezuela’s exports have been supplied to China as part of its oil-for-loans
arrangements, in which China has loaned close to $50 billion to Venezuela in exchange
for crude oil deliveries over the last decade. 34 Exports to China and other countries were
also done as part of sanctions evasions prior to 2023. As of 2023, China received 69% of
Venezuela’s crude oil exports (Figure 15).
• In 2018, PDVSA announced an indefinite suspension of crude oil and fuel exports to all
of Petrocaribe countries, except for Cuba, because of insufficient production, rising
domestic fuel shortages, and a deteriorating refinery industry. Venezuela has been
Cuba's main political ally as well as its largest supplier of crude oil and fuel for over two
decades. Cuba is increasingly turning to Russia and Mexico for crude oil to alleviate a
severe diesel and gasoline shortage and supplement Venezuela’s crude oil. In 2022,
Venezuela accounted for 75% of Cuba's crude oil imports, and Russia accounted for
25%. In 2023, Venezuela accounted for 58% of Cuba's crude oil imports, Mexico for 31%,
and Russia for 11%. 35
• Venezuela’s crude oil exports increased slightly in 2023, owing primarily to Iranian
assistance and the easing of U.S. sanctions (Figure 16). Cooperation with Iran from 2020
to 2023 resulted in higher diluent imports, allowing for greater availability of export-
ready heavy crude oil grades, without which upstream volumes would fall and exports
would decline (Figure 17). Furthermore, as of 2022, Iran and Venezuela have
accelerated crude oil swaps, exchanging Venezuela’s heavy Orinoco crude oil for
condensates, which can be used to mix and dilute the Orinoco crude oil for export. The
swaps also bring in crude oil from Iran that Venezuela can use directly in its refineries, in
turn leaving Venezuela’s lighter crude oil grades available for export.
• In May 2022, OFAC allowed Eni and Repsol to resume oil-for-loan exchanges, a partial
easing of sanctions; this agreement allowed the import of Venezuela’s crude oil as a way
to clear arrears and settle billions of dollars in unpaid debt and dividends owed by
PDVSA. OFAC’s action accelerated negotiations between PDVSA and its foreign joint
venture partners, including Eni, Repsol, Chevron, ONGC, Maurel, and Prom. Starting in
June 2022, tankers transported Venezuela’s crude oil into Spain and Italy for the first
time in over two years.
• In November 2022, OFAC granted Chevron a temporary license allowing it to resume
operations in Venezuela at its four joint ventures with PDVSA. Chevron is granted
permission to produce and export petroleum or petroleum products in Venezuela
through its joint ventures. The license, however, is only temporary and allows Chevron
to sell and export oil from the ventures to the United States to repay Venezuela's debts
19
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to the company; it does not allow Chevron to pay taxes, royalties, or dividends to
PDVSA.
• Overall, due to Iran's assistance and a relaxation of restrictions to allow for oil-for-loan
repayment swaps, as well as Chevron's partial return to business operations in
Venezuela, crude oil exports have increased from a low of 263,000 b/d in 2021 to
442,000 b/d in 2022 and an estimated 621,000 b/d in 2023.
• Venezuela does not participate in liquefied natural gas (LNG) trade; however, the
government plans to expand offshore natural gas production and to export it as LNG.
Atlantic LNG signed an agreement in 2023 that allows Trinidad and Tobago's state-
owned National Gas Company to increase its equity across the liquefaction trains,
creates a single unitized commercial structure, and, most importantly, allows third-party
access. As a feedstock for Atlantic LNG, nearby natural gas from Venezuela could be a
viable short-term development option, leading to a boost in natural gas production and
opening the door to natural gas exports.
• Trinidad and Tobago received a two-year license from the U.S. Department of the
Treasury in January 2023 to work with Venezuela on developing the Dragon Field. Shell
would operate the Dragon field, and once operational, the natural gas would be
transported to the Hibiscus platform for transmission to the Trinidad and Tobago plants
license was amended in March 2023 and authorizes those entities to engage in activities
related to the Dragon natural gas field's planning, financing, development, execution,
and management. The license also authorizes payments to the Venezuelan government
in U.S. dollars or bolivars, including taxes, royalties, fees, and lease bonus payments.
Negotiations with Venezuela are ongoing on commercial terms, the price of the natural
gas, and technical aspects of the field's development. 36 The license expires in October
2025.
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Figure 15. Venezuela’s crude oil exports by region and country, 2023
percentage of total crude exports
United States
23%
North America
23%
Bahamas
0.4%
Cuba Central and South
4% America 4%
Spain Europe 4%
4% Asia-Pacific
69%
Russia
0.2%
China
68%
Malaysia
0.3%
Singapore
0.5%
Data source: Vortexa Ltd.
Note: Some individual figures may not match the regional total because of rounding.
Exports to Malaysia and Singapore were mostly re-exported to China.
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Figure 16. Venezuela’s oil exports, 2016–2023
thousand barrels per day
2,200
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
2016 2017 2018 2019 2020 2021 2022 2023
heavy-sour other high sulfur fuel oil chemicals jet fuel olefins/other chemicals
Data source: Vortexa Ltd.
Note: Other contains asphalt, biodiesel feedstock, bitumen, blending components, butane, diesel,
dirty feedstocks, finished biodiesel, finished gasoline, full range naphtha, gasoil, heavy-sweet,
kerosene, light-sour, light-sweet, low sulfur fuel oil, lube oils, medium-sour, olefins or other chemicals,
other biodiesel or edible oils, propane, ultra-low sulfur diesel, undetermined, and vacuum gas oil.
Figure 17. Venezuela’s oil imports, 2016–2023
thousand barrels per day
450
400
350
300
250
200
150
100
50
0
2016 2017 2018 2019 2020 2021 2022 2023
other heavy naphtha finished gasoline clean condensates medium-sour ultra-low sulfur diesel
Data source: Vortexa Ltd.
Note: Other contains biodiesel feedstock, bitumen, blending components, butane, chemicals, diesel,
dirty condensates, finished biodiesel, full range naphtha, gasoil, heavy-sour, heavy-sweet,
high sulfur fuel oil, jet fuel, light naphtha, light-sour, light-sweet, low sulfur fuel oil, lube oils, medium-sweet,
olefins or other chemicals, other biodiesel or edible oils, propane, undetermined, and vacuum gas oil.
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24