303 billion barrels: How Venezuela became the world’s biggest oil holder & why it still struggles

Venezuela holds the largest proven crude oil reserves in the world, a distinction that has defined its economy, geopolitics and global relevance for decades, even as production remains far below its potential.  

According to international energy agencies and OPEC data, Venezuela’s proven oil reserves stand at around 303 billion barrels, accounting for nearly one-fifth of global reserves. This places the South American nation ahead of Saudi Arabia, Iran, Canada and Iraq. The scale of this endowment makes Venezuela a central — if often troubled — player in global energy discussions. 

At current prices of roughly $57 per barrel, Venezuela’s oil reserves are valued at approximately $17.3 trillion. Even if sold at half the prevailing market rate, the reserves would still be worth nearly $8.7 trillion — a figure larger than the entire GDP of every country in the world except the United States and China, and nearly four times the size of Japan’s economy.  

The Orinoco Belt: Source of Venezuela’s oil wealth  

The bulk of Venezuela’s oil lies in the Orinoco Oil Belt, a vast geological formation stretching across eastern Venezuela. This region contains immense quantities of heavy and extra-heavy crude, which differs significantly from the lighter oil produced in the Middle East. While abundant, this crude requires upgrading, blending or specialised refining before it can be exported or used, raising costs and technical complexity.  

Despite these challenges, the Orinoco Belt alone is considered one of the largest hydrocarbon deposits ever discovered, underpinning Venezuela’s position as the world’s most oil-rich nation on paper.  

Oil at the heart of the economy  

Oil has long been the backbone of Venezuela’s economy. For much of the 20th century, petroleum exports generated the majority of government revenue and foreign exchange. The state-owned oil company PDVSA was once regarded as one of the most capable national oil firms globally, producing over 3 million barrels per day at its peak. 

That picture has dramatically changed. Years of underinvestment, mismanagement, infrastructure decay, skilled-worker exodus and international sanctions have sharply curtailed output. Although Venezuela sits atop unparalleled reserves, current production is estimated at well under one million barrels per day, a fraction of its historic levels and modest compared with other major producers.  

Why the world’s largest reserves yield limited output  

Venezuela’s oil paradox lies in the gap between reserves and recoverability. Heavy crude is costlier to extract and refine, making it less competitive without sustained investment and stable market access. Sanctions have further constrained financing, technology transfers and export routes, limiting PDVSA’s ability to revive production at scale.  

As a result, countries with smaller reserves but more efficient infrastructure and stable investment climates often produce and export far more oil than Venezuela.  

Strategic importance amid geopolitical tensions

Venezuela’s oil wealth continues to shape its geopolitical standing. As a founding member of OPEC, the country remains symbolically significant within the cartel, even if its output no longer matches its reserve dominance. Global interest in Venezuelan crude periodically resurfaces during supply shocks, price spikes or shifts in sanctions policy, underscoring the strategic value of its untapped reserves.  

Venezuela’s vast oil reserves represent both immense potential and enduring constraint. While no country holds more crude beneath its soil, transforming that resource into sustained economic recovery remains a formidable challenge. Until investment, infrastructure and political stability align, Venezuela’s title as the world’s largest oil-reserve holder will continue to contrast sharply with its limited production and economic returns.