Energy in Venezuela

Oil

In 1878, a group of Venezuelan entrepreneurs founded the first oil company in Venezuela. Venezuela ranked 11th in the world for oil production in 2016; production has since fallen steeply. The largest oil company is Petróleos de Venezuela (PDVSA). Oil fields in the country include Bolivar Coastal Field, Boscán Field, Maracaibo Basin and Orinoco Belt.

In 2023, Venezuela held the world's largest proven oil reserves at 303 billion barrels, accounting for 17% of global reserves, mostly extra-heavy crude from the Orinoco Belt. Despite this, production was only 0.8% of the global total, dropping to 742,000 barrels per day, a 70% decline from 2013. Production rose by 13% in 2021 and 18% in 2022 with help from Iran, China, and Chevron after some sanctions were eased. PDVSA, the state oil company, faces issues like heavy government levies, underinvestment, mismanagement, and a lack of skilled personnel, reducing reinvestment and production. Venezuela's oil exports reached their peak in 1998 and have been in decline since. Refineries operate below capacity due to maintenance issues and lack of feedstock. Venezuela relies on fuel imports from Iran and China due to domestic shortages. A territorial dispute with Guyana over the Essequibo region heightened tensions, but both countries agreed to seek a diplomatic resolution.

Venezuela is expected to run out of crude oil in 390 years, making it one of the countries that will be able to continue producing it after other countries run out of their oil resources. In Venezuela, fossil fuels account fr more than 80% of total energy consumption.

Natural gas

In 2023, Venezuela held 195 trillion cubic feet (Tcf) of natural gas reserves, making up 73% of South America's total. Most of this gas is associated with crude oil, with 80% produced as a by-product. Despite these vast reserves, much of Venezuela's natural gas is underutilized, used to support mature oil fields or flared due to inadequate infrastructure. Production peaked at 1.12 Tcf in 2001 but fell to 563 billion cubic feet (Bcf) by 2021, hampered by poor investment and lack of infrastructure. Domestic consumption peaked at 936 Bcf in 2015 but dropped to 563 Bcf by 2021 due to economic decline. Venezuela is a major gas flarer, with flaring increasing fourfold from 2012 to 2021, reaching 706 Bcf in 2022. Government-regulated prices and subsidies keep natural gas prices below market rates, further limiting investment in the sector.

Coal

In 2021, Venezuela held South America's fourth-largest coal reserves, totaling 806 million short tons. The main coalfields are in Zulia State, near the Colombian border. Coal plays a minor role in Venezuela's energy mix, contributing 0.2% to total energy production and 0.1% to consumption. The coal industry faces challenges such as outdated infrastructure and limited investment, leading to a production decline of 16% annually from 2001 to 2021, after peaking at nearly 8.7 million short tons in 2000. By 2021, production was 174 thousand short tons, entirely bituminous coal. Most of Venezuela's coal is used domestically in industrial processes. Consumption peaked at 319,000 short tons in 2012 but dropped to 67,000 short tons by 2021 due to economic decline.

Electricity

Hydroelectricity

Hydro power provided 90% of domestic electricity in 2023. Venezuela produced 87 TWh hydro power in 2008, 2.6% of the world's total. Venezuela was 8th in hydro electricity in 2008. Venezuela's commitment to hydroelectricity was introduced in 1946 through the National Electrification plan and was approved by government officials in 1956. Almost half of Venezuela's hydroelectricy comes from the Guri dam, which has a capacity of more than 10GW.

Renewable energy

Venezuela increased their renewable energy consumption to 30.13% in 2020, which added to the country's total energy consumption. Biofuels and waste in Venezuela make up about 1.9% of renewable energy.