Venezuela Oil and Gas Market Size
| Study Period | 2021 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2021 - 2022 |
| CAGR | < 3.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Venezuela Oil and Gas Market Analysis
The Venezuelan oil and gas market is expected to record a CAGR of less than 3.5% during the forecast period.
The market was negatively impacted by COVID-19 in 2020. However, the market has now reached pre-pandemic levels.
The Venezuelan government plans to nationalize its oil and gas assets due to the implementation of United States sanctions on Venezuela. Nationalizing the asset reduces the capital expenditure of foreign oil companies, resulting in a decrease in crude oil production from the country during the forecast period. Decreased crude oil production due to lower capital investment is expected to restrict the market's growth during the forecast period. Nevertheless, Venezuela has massive potential for hydrocarbon resources. The country has the possibility of foreign player involvement and participation in oil and gas exploitation in the near future.
Venezuela Oil and Gas Market Trends
This section covers the major market trends shaping the Venezuela Oil & Gas Market according to our research experts:
Upstream Sector as a Prominent Market
Venezuelan upstream includes the exploration and production of crude oil and natural gas from its Orinoco Oil Belt (OOB) in central Venezuela. Over nineteen thousand square miles, OOB has been divided into 36 blocks within four exploration areas: Boyaca, Junin, Ayachucho, and Carabobo. Venezuela allows foreign firms to invest, but the country requires PdVSA (state-owned oil and gas company) to hold at least 60% equity in joint ventures.
In 2021, crude oil reserves in Venezuela reached close to 304 billion barrels, more than triple the figure reported at the beginning of the previous decade. Venezuela boasted the largest crude oil reserves worldwide. However, the country's oil production dipped below one million barrels per day in recent years, a drop of more than threefold compared to a decade earlier. Venezuela awarded 18 natural gas exploration and production licenses to private companies to attract foreign investment. However, only five of those licensees have been operating (including three in which PdVSA Gas serves as a minority partner). In November 2022, Chevron Corporation received a US license allowing the second-largest US oil company to expand its production in Venezuela and bring the South American country's crude oil to the United States.
Due to the above-mentioned factors, the upstream sector is expected to dominate the Venezuelan oil and gas market during the forecast period.
Decrease in Capital Expenditure Hinders the Market's Growth
Venezuela's oil production peaked in 1970 when the country produced nearly 3.8 million bpd. The country nationalized its oil and gas operations and established Petróleos de Venezuela SA as a state-owned oil and gas company in 1976. Later in 1997, it invited foreign companies to invest in its hydrocarbon resources.
The country's hydrocarbons industry has completely collapsed due to political mismanagement, the dismantling of Petróleos de Venezuela SA's managerial structures, and deviations in longstanding company policy implemented by the government of Nicolas Maduro since 2014. These factors have undermined the oil and gas sector and destabilized the national economy.
However, in 2021, the country witnessed slight demand for oil products, which amounted to 232 thousand barrels per day, a growth of roughly 23% compared to 2020. Gasoline and residuals made up the largest share of the country's demand.
The country is under financial debt, and there are limited foreign companies to fund the oil and gas projects, resulting in declining production over the years and is expected to decline during the forecast period due to political instability across various parts of the country and the United States sanctions on the nation.
As per the sanctions, the country's government and PdVSA are prohibited from accessing the United States financial market. The sanctions prohibited transactions with the Maduro government (Venezuela), thus leaving the country with limited investment.
Due to the above-mentioned factors, a decrease in capital expenditure is expected to hinder the market's growth during the forecast period.
Venezuela Oil and Gas Industry Overview
The Venezuelan oil and gas market is moderately consolidated. The key players (in particular order) include Petróleos de Venezuela SA, Chevron Corporation, Total SA, NK Rosneft PAO, Repsol SA, Eni SpA, China National Petroleum Corporation (CNPC), China Petroleum & Chemical Corporation (Sinopec), ONGC Videsh Limited, and Belorusneft AZS, among others.
Venezuela Oil and Gas Market Leaders
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Petróleos de Venezuela S.A
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Chevron Corporation
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Total SA
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NK Rosneft PAO
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Repsol SA
*Disclaimer: Major Players sorted in no particular order
Venezuela Oil and Gas Market News
In December 2022, the Venezuelan government and American oil company Chevron Corporation signed a contract to resume oil and gas operations in Caracas, Venezuela. This contract aims to continue with the production and development activities in the energy sector, framed within the constitution and the Venezuelan laws that govern oil activity in the country.
Venezuela Oil and Gas Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Venezuela Oil and Gas Market in USD billion, till 2027
4.3 Venezuela Oil and Gas Production, in 2021
4.4 Recent Trends and Developments
4.5 Government Policies and Regulations
4.6 Market Dynamics
4.6.1 Drivers
4.6.2 Restraints
4.7 Supply Chain Analysis
4.8 PESTLE Analysis
5. MARKET SEGMENTATION
5.1 By Upstream
5.1.1 Existing Infrastructure
5.1.2 Projects in Pipeline
5.1.3 Upcoming Projects
5.2 By Midstream
5.2.1 Existing Infrastructure
5.2.2 Projects in Pipeline
5.2.3 Upcoming Projects
5.3 By Downstream
5.3.1 Existing Infrastructure
5.3.2 Projects in Pipeline
5.3.3 Upcoming Projects
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Petroleos de Venezuela SA
6.3.2 Total SA
6.3.3 NK Rosneft PAO
6.3.4 Repsol SA
6.3.5 Eni SpA
6.3.6 China National Petroleum Corporation (CNPC)
6.3.7 China Petroleum & Chemical Corporation (Sinopec)
6.3.8 ONGC Videsh Limited
6.3.9 Belorusneft AZS
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Venezuela Oil and Gas Industry Segmentation
Oil and gas play an influential role in the global economy as the world's primary fuel source. Oil and gas operations are primarily classified into upstream, midstream, and downstream activities.
The Venezuelan oil and gas market is segmented by type. By type, the market is segmented by upstream, midstream, and downstream. For each segment, the market size and demand forecasts have been done based on USD billion.
| By Upstream | |
| Existing Infrastructure | |
| Projects in Pipeline | |
| Upcoming Projects |
| By Midstream | |
| Existing Infrastructure | |
| Projects in Pipeline | |
| Upcoming Projects |
| By Downstream | |
| Existing Infrastructure | |
| Projects in Pipeline | |
| Upcoming Projects |
Venezuela Oil and Gas Market Research FAQs
What is the current Venezuela Oil and Gas Market size?
The Venezuela Oil and Gas Market is projected to register a CAGR of less than 3.5% during the forecast period (2024-2029)
Who are the key players in Venezuela Oil and Gas Market?
Petróleos de Venezuela S.A, Chevron Corporation, Total SA, NK Rosneft PAO and Repsol SA are the major companies operating in the Venezuela Oil and Gas Market.
What years does this Venezuela Oil and Gas Market cover?
The report covers the Venezuela Oil and Gas Market historical market size for years: 2021, 2022 and 2023. The report also forecasts the Venezuela Oil and Gas Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Venezuela Oil and Gas Industry Report
Statistics for the 2024 Venezuela Oil and Gas market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Venezuela Oil and Gas analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
