Venezuela Surpasses One Million Barrels of Oil Production Amid Industry Struggles

Venezuela’s oil production exceeded one million barrels per day (bpd) in January 2025, marking a key milestone for its struggling energy sector.

According to the Organization of the Petroleum Exporting Countries (OPEC), state-owned Petróleos de Venezuela S.A. (PDVSA) reported output at 1.031 million bpd, an increase of 33,000 bpd from December 2024.

However, secondary sources cited by OPEC placed production lower, at 892,000 bpd, down 18,000 bpd from the prior month. These figures reflect progress despite lingering challenges in the country’s oil industry.

The recovery coincided with a rise in the price of Venezuela’s flagship crude blend, Merey, which averaged $66.86 per barrel in January, up from $61.13 in December 2024.

Oil remains critical to Venezuela’s economy, accounting for nearly 87% of export revenue. The government had set surpassing one million bpd as a strategic goal after years of steep declines caused by mismanagement, underinvestment, and U.S. sanctions.

Temporary easing of sanctions in late 2023 under General License 44 (GL44) allowed Venezuela to sell crude without heavy discounts. However, these measures were reversed in April 2024 following disputes over the country’s presidential elections.

Venezuela’s Oil Sector Faces Uncertainty

The return of Donald Trump to the U.S. presidency has further strained relations, with his administration considering revoking Chevron’s license to operate in Venezuela. Chevron’s joint ventures currently contribute about a quarter of the nation’s oil output.

Despite this progress, Venezuela’s oil infrastructure remains severely degraded after years of neglect. Experts estimate that restoring capacity will require $8–10 billion annually in investments.

Labor shortages and political instability further complicate recovery efforts. While surpassing one million bpd signals improvement, Venezuela remains far from its peak production of over three million bpd in the late 1990s.

Sustaining growth will depend on securing foreign investment and addressing long-standing infrastructure and geopolitical challenges. For investors and policymakers, these developments highlight both opportunities and risks tied to Venezuela’s oil sector recovery.