Venezuela’s oil industry is experiencing a significant resurgence, with the United States emerging as the primary destination for its crude exports. This shift comes amidst a complex political landscape and evolving energy strategies. As of mid-2026, Venezuela is sending over 500,000 barrels per day (bpd) to the US, a substantial increase from previous years.
The country’s oil reserves, the largest in the world, have long been a critical factor in global energy markets. However, decades of underinvestment and sanctions have hampered production. Recent political developments have altered this trajectory, with the US playing a pivotal role in facilitating increased oil flows.
US refineries benefit from Venezuelan crude
The US Gulf Coast refineries, particularly those in Texas and Louisiana, are well-equipped to process Venezuela’s heavy, sour crude. This type of crude is cheaper and often more profitable to process, making it an attractive option for refiners. The resumption of Venezuelan imports has provided a direct benefit to these plants, which were built specifically to handle such crude.
Under Secretary of Energy Kyle Haustveit highlighted the strategic importance of this arrangement, describing it as a beautiful energy partnership. He noted that the US is sending more than 100,000 bpd of naphtha to Venezuela, where it is blended with heavier crude. This mutual exchange is creating real value on both sides of the trade according to Haustveit.
Production and export targets
Venezuela’s state oil company, PDVSA has set ambitious targets for increasing production and exports. Jovanny Martinez, a vice president at PDVSA, announced that the country’s crude output would reach 1.245 million bpd by the end of August 2026. Exports have already increased by 19.7% this year, with domestic fuel production rising by 12.9%.
Martinez emphasized the need for modernizing and expanding Venezuela’s refineries, as well as developing domestic diluents for heavier grades. These efforts are part of a broader energy reform aimed at achieving tangible results in terms of development.
Political and economic implications
The increase in Venezuela’s oil output comes against the backdrop of significant political changes. US President Donald Trump has stated that Washington would run Venezuela and tap its oil reserves. Following the removal of former President Nicolas Maduro Trump asserted that the money will be controlled by me to ensure it benefits both Venezuela and the United States.
US Secretary of State Marco Rubio clarified that funds from Venezuelan oil sales would be deposited into an account under US oversight. Caracas would submit monthly budget requests, with Washington specifying the permissible uses of the funds. The Financial Times reported that the US has collected over $13 billion in revenue from Venezuelan oil sales this year, a figure Trump disputed, claiming it was higher.
The Council on Foreign Relations has expressed concerns about the lack of transparency in the US administration’s handling of Venezuelan oil revenues. The think tank noted that while the administration has framed its control of Venezuelan oil exports as beneficial for both countries, it has not publicly disclosed key details such as the volume of oil sold, revenue collected, or the use of these funds.
Additionally, the think tank raised concerns about the exclusion of Venezuela’s opposition and civil society from discussions with the interim government in Caracas. Without accountability mechanisms or a clear democratic roadmap, the United States risks entrenching a corrupt successor regime, it warned.
Venezuela’s opposition, including Nobel peace laureate Maria Corina Machado agreed in May to a new roadmap calling for presidential elections and political negotiations. This development underscores the complex interplay between energy, politics, and economics in Venezuela’s current landscape.
