- Datum: 12.02.2026
- Land:Venezuela
- Kategorie:Berichte & Analysen
Without Institutional Change, Venezuela’s Oil Bonanza Remains Unviable
The author emphasises that lifting sanctions alone will not revive Venezuela’s oil sector. Although lifting sanctions is a necessary first…
The author emphasises that lifting sanctions alone will not revive Venezuela’s oil sector. Although lifting sanctions is a necessary first step, it is insufficient to attract the $100 billion investment and decade-long effort required to restore production to 4 million barrels per day. Investors require more than just access; they need legal certainty, policy continuity and political stability, elements that have consistently been lacking in Venezuela. Venezuela’s history of broken contracts and ever-changing rules has eroded trust, making long-term, large-scale investment unlikely without fundamental institutional reform. The author argues that a meaningful recovery depends on three critical conditions. Firstly, Venezuela must establish stable and constructive relations with the US and Europe to ensure a permanent end to oil sanctions. Secondly, the country must transition to democracy, fostering political stability and societal consensus in favour of foreign investment. Thirdly, Venezuela must enact and enforce a credible legal framework that protects contracts and investor rights. Without these changes, only limited 'low-hanging fruit' investments, such as those by Chevron, Repsol or ENI, are likely to be made, focusing on short-term gains rather than the long-term rebuilding of the sector. The article concludes that Venezuela’s oil wealth will remain largely untapped unless the country undergoes profound governance and institutional transformation. Only then can Venezuela reclaim its status as a global energy leader and fulfil the potential of its vast resources.
Read here the complete report from Americas Quarterly: Without Institutional Change, Venezuela’s Oil Bonanza Remains Unviable