SYNOPSIS OF VENEZUELAN OIL INDUSTRY
(USA vs China & Russia in Venezuela)
*Oil discovery in Venezuela:
Commercial quantity was discovered in April 1914
*USA oil companies in Venezuela:
(i) Oldest is Chevron Corporation, began exploration in 1923
Chevron continues working in Venezuela in partnership with the national oil company, Petróleos de Venezuela (PDVSA)
On 12th March 2025, the Trump administration revoked Chevron's license to operate in Venezuela
*Other USA Oil Companies in Venezuela include:
(ii) Creole Petroleum Corporation (later became Exxon)
(iii) Gulf Oil
(iv) Pan American Petroleum and Transport Company (est. 1916)
*Nationalization of USA Oil Companies by the Government of Venezuela in the 1970s (i.e. Hugo Chávez)
All American companies were nationalized except Chevron!
*Oil Reserves of Venezuela:
BP data of 2019 (proved reserves)
(i) Venezuela 303.3 billion barrels
(ii) Saudi Arabia 297.7 billion barrels
*Natural gas reserves of Venezuela
34th in the world: 200 trillion cubic feet (tcf)
*Leading buyers of Venezuelan oil
(i) China: >600,000 barrels a day
(ii) USA: 150,000 - 222,000 barrels a day
CHINA& RUSSIA in Venezuela
(i) China:
(a) Key commodities to Venezuela include: oil industry machinery, vehicles, motorcycles, electronics and telecom facilities (i.e. Huawei tech), machinery and industrial equipment, etc
(b) Besides oil, iron ore is another major commodity exported by Venezuela to China. The 2024 iron ore export values are not clear (discrepancies) ranging from USD 275 million to 2.1 billion!
(ii) Russia:
Most important exports from Russia to Venezuela, especially after the USA embargo:
(a) Naphtha, also known as crude oil distillate - very important ingredient of petrochemical industries
(b) Military equipment
*Does Venezuela possess minerals appearing on the USA's list of its critical/strategic minerals?
Yes, though Venezuelan deposits are not the largest in the world.
USA's list: 60 critical minerals
The list was released in November 2025 by USGS (US Geological Survey)
*Gold & Silver reserves of Venezuela:
The world is keenly following the storage of these reserves internally (within Venezuela) and externally, e.g. Venezuela's gold reserves in the Bank of England
Earth Resources of Venezuela:
The geology, mineral and hydrocarbon resources of Venezuela are similar to those of western Africa....please open the attachment to see the authenticity of the said similarity.
USA vs China & Russia in Venezuela: issues are complex!
Uchambuzi huu ameufanya Mhe. Prof. Sospeter Muhongo
*Honorary Fellow of the Geological Society of America
*Honorary Research Fellow of the Chinese Academy of Geological Sciences
Date: Sun, 4 Jan 2026