Venezuela's Oil Recovery Hinges on Infrastructure and Power

Venezuela's oil production has been struggling to recover due to a lack of infrastructure and power, but experts say it can reach 3.3 million barrels per day over the next decade with significant improvements.

The Oxford Institute for Energy Studies (OIES) released a report in August that highlighted the challenges facing Venezuela's oil industry. The country has an estimated 303 billion barrels of proven crude oil reserves, but its current production levels are less than one million barrels per day.

To reach its potential, OIES recommends a phased approach to developing the Orinoco resource base, focusing on lower-viscosity crude and brownfield opportunities first. This will allow for relatively rapid production and cash flow before moving into more capital-intensive thermal recovery projects.