The Energy Transition in Venezuela

Venezuela sits atop some of the world’s largest reserves of oil, gas, and mineral resources, yet remains economically fragile and politically isolated. In early January 2026, the context shifted sharply following a US-led operation that detained President Nicolás Maduro, intensifying international legal and diplomatic scrutiny and deepening uncertainty over governance and sovereignty. At the same time, a US oil blockade and expanded sanctions targeting oil traders and tankers have disrupted Venezuela’s export lifeline, including shipments linked to previously authorised arrangements, tightening near-term constraints on state revenues and continuity in the oil sector. This volatility sharpens a structural paradox. Venezuela’s geology is exceptionally rich, not only in hydrocarbons but also in minerals increasingly relevant to clean energy and industrial supply chains, including aluminium, phosphorus, sulfur, and iron, alongside significant gold and lead reserves. However, deteriorating infrastructure, fragmented institutions, and a prolonged political crisis have constrained the country’s ability to develop and monetise these resources in a strategic, transparent, and socially responsible manner. As critical minerals take centre stage, Venezuela’s potential remains unrealised mainly, caught between vast geological promise and profound political constraints. Any credible pathway toward an energy transition or sustainable mineral development will depend not only on market dynamics but also on institutional rebuilding, regulatory reform, and renewed international engagement.