A region of Latin America that has more oil than all of Saudi Arabia, but, surprisingly, its production is 12 times less

Venezuela: the world's largest oil treasure hidden in a region of Latin America, but with lower-than-expected production.

There is a region in Latin America that has more oil than all of Saudi Arabia, but, incredibly, it produces 12 times less. We are talking about Venezuela, more specifically the Orinoco Oil Belt, a true black treasure buried in the east of the country. Although it houses the largest reserves of oil of the planet, This wealth faces a series of obstacles that hinder its full exploitation.

Venezuela not only has oil, it has A LOT of oil. We are talking about 300,878 billion barrels in proven reserves, which puts the country ahead of giants like Saudi Arabia, which has “only” 267 billion barrels. Sounds like a dream, right? But the reality is different: Venezuela, which once produced 3 million barrels per day, today can barely extract 770 barrels from the ground daily. This is less than countries like Colombia, Mexico and Brazil, which have much smaller reserves.

Orinoco Oil Belt

O Orinoco Oil Belt This is where the magic (or lack thereof) happens. With 55.314 km², this area concentrates 90% of Venezuela's oil. It's just not easy to extract. It is heavy, extra heavy and has a viscosity that makes life difficult for any engineer. Jorge Navarro, vice-president of the Spanish Association of Petroleum Geologists and Geophysicists, explains that this type of oil requires special techniques, such as steam injection or the use of diluents, to be extracted and processed. And that is expensive, very expensive.

Venezuelan oil is more expensive to transport and refine

Now, think about the following: in addition to being difficult to extract, Venezuelan oil is more expensive to transport and refine. And, as if that weren't enough, it is sold at a lower price than light oil. Venezuelans have to pay for diluents, chemicals that make this oil easier to handle. In other words, it is a complicated business that is heavy on the pocket.

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The United States called a truce and lifted sanctions on the Venezuelan oil sector

But it's not all bad news. In 2023, the United States called a truce and suspended sanctions on the Venezuelan oil sector for six months. This brought a ray of hope, allowing foreign companies to begin returning to the Orinoco Belt. However, in April 2024, sanctions returned, but with a small opening: now, foreign companies can obtain individual licenses to invest in the region. It's a sign that the game can turn around, but there's still a lot of work ahead.

The Latin American region that has more oil than all of Saudi Arabia needs to overcome these obstacles

Venezuela has a Big challenge ahead if you want to turn your immense potential into reality. Modernize infrastructure, attract foreign investment and stabilize the economy These are essential steps for the country to finally take advantage of its gigantic oil reserves. THE region of Latin America that has more oil than all of Saudi Arabia You need to overcome these obstacles to stop being just a sleeping giant and become a real energy powerhouse.

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So, what do you think of this situation? Will Venezuela be able to overcome all these challenges and become a global power? oil?