Venezuela's Oil Recovery Halted by Chronic Electricity Deficit

Venezuela's oil industry is facing an unexpected bottleneck that surpasses the impact of Western sanctions and lack of investment capital. The country's chronic electricity deficit has made it impossible to restore production levels, according to industry executives who spoke at a recent energy conference in Caracas.

The national power system is currently plagued by a generation shortage exceeding 1,500 MW, causing frequent rolling blackouts that paralyze field operations. This infrastructure instability has discouraged investors from expanding projects until the government can guarantee a stable power supply.

Companies have proposed converting associated petroleum gas into electricity to mitigate these constraints, but regulatory approval is still pending. Industry operators argue that localized generation cannot compensate for the collapse of the national transmission network.