Venezuela oil overhaul faces investor scepticism despite US push

Efforts by Washington and Venezuela’s opposition to reshape the country’s oil industry are gaining momentum, though uncertainty among international investors continues to weigh on prospects for a rapid recovery.

US officials say control over Venezuela’s oil revenues will help keep Caracas aligned with global partners until elections are held, Argus reported. 

Recent measures include easing sanctions and requiring companies to channel payments through US-controlled accounts, alongside steps by Venezuelan authorities to open the energy sector to foreign investment under a revised hydrocarbons law.

Opposition leader María Corina Machado has advocated deeper reforms, including privatising the state oil company, establishing an independent regulator and offering long-term contracts to investors. 

She has said that with $150bn in investment, crude output could reach 5mn barrels a day within a decade, compared with roughly 1mn currently.

Major oil companies, however, remain cautious. Industry executives say that while reforms are moving in the right direction, restoring production will demand substantial capital, time and stronger legal and fiscal frameworks. 

Concerns persist over regulatory clarity, unresolved arbitration disputes and the need for stable contracts.

Although some firms are exploring opportunities, the broader industry view is that Venezuela must deliver consistent policies and credible legal protections before large-scale investment materialises.