MOSCOW, January 21. /TASS/. Restoring Venezuela’s oil production to historic highs would require appropriate political and investment conditions - however, in the short term, the appearance of the country’s oil volumes on the global market could have the greatest impact, according to a report by the International Energy Agency (IEA).
The IEA emphasized that, despite the challenges of producing heavy Venezuelan crude, companies with access to it can generate profits even in the early stages of production. In particular, Chevron has said it is able to scale up operations, while traders Vitol and Trafigura have received licenses to transport oil. The path forward for Venezuela and its oil industry remains uncertain, the IEA noted.
According to the report, to ensure supply growth to historically maximum levels, political and investment conditions are needed that provide stability and profitability across financial, fiscal, legal and regulatory frameworks, as well as in the security sphere. In the short term, the greatest impact on oil markets may come from the emergence of Venezuelan barrels on freely traded markets, the IEA said.
Venezuela’s oil production averaged 950,000 barrels per day in 2025, while exports totaled 780,000 barrels per day, the IEA notes. The country’s historical peak in oil production stands at around 3.5 mln barrels per day.
Venezuela’s proven oil reserves are considered the largest in the world; however, in recent years the country has sharply reduced production and exports amid political and economic instability. Most Venezuelan crude is extra-heavy and requires blending with lighter diluents for processing and transportation. As the IEA noted, in 2022 the United States became a supplier of such diluents, and after the tightening of sanctions and the withdrawal of general licenses in 2025, Venezuela shifted to sourcing Russian naphtha.