During the discussions at the Venezuela International Oil and Gas Summit 2026, held in late September in Caracas, technical conversations naturally took center stage regarding the recovery of Venezuela's hydrocarbons sector. Given the history of the Venezuelan petro-state, it is easy to assume that the country will continue an institutional legacy that relies on these resources as the primary engine for long-term development. When factoring in the nation’s proven reserves—standing at 303 billion barrels of oil—it becomes clear why both public and corporate actors, nationally and internationally, are so keen to understand Venezuela's reality amid a political transition that hints at change after eight years of isolation and high country risk.
Parallel to the core oil and gas topics, delegates from various strategic sectors gathered at both IESA and the JW Marriott, sharing the same key questions: How can we trust Venezuelan institutions? Are incentives being considered to attract foreign investment? Is the new legal framework approved? Does it offer a full and competitive opening for Venezuela’s energy market?
While there are many potential answers, concrete actions remain scarce from the government led by Delcy Rodríguez, who assumed the interim presidency following the removal of Nicolás Maduro on January 3rd.
Although Washington has invested significant political capital in Venezuela, institutional systems do not reform overnight. The lack of legal certainty and institutional transparency continues to fuel investor distrust, stalling modernization and maintenance projects crucial for securing basic public services. Even though the country boasts an installed capacity that exceeds current consumer demand, the severe degradation of power generation facilities hampers operational efforts to add megawatts to the national grid.
A clear example of supply chain disruption in Venezuela is natural gas thermoelectric generation. According to the World Bank’s Global Gas Flaring Tracker report, Venezuela ranks fifth globally in gas flaring volumes. Yet, this resource fails to translate into an efficient power system; rather than being burned in generation turbines, the gas is flared due to deteriorating pipelines, the collapse of tanker truck fleets, and a lack of storage infrastructure.
Despite the private sector’s willingness, recommendations from professional associations, and available on-the-ground talent, the institutional variable moves at a sluggish pace—one that suggests the political leadership is reluctant to implement or even highlight necessary reforms. Nine months into this new political chapter, there are still no attractive tax mechanisms or fiscal incentives to stimulate capital flows toward restoring the national power grid. The burden of taxes such as VAT and the Large Financial Transactions Tax (IGTF), combined with a lack of tariff protections or duty relief, significantly inflates operational costs across the entire energy value chain.
Furthermore, the "rules of the game" for gas sales, commercialization, and distribution remain unclear and unappealing to private and international investors. Even less clear is the potential opening of Venezuela’s electricity market, which has stalled following the initial approval of a draft reform to the National Electricity Service Law.
Investment stakeholders remain on high alert, waiting for new conditions to materialize. Unfortunately, government announcements come with excessively long pre-execution windows for a crisis as complex as Venezuela’s energy deficit. While forums like VIOGS 2026 successfully articulate these necessities—bringing together top-tier panelists who shared expertise, technical insights, and policy recommendations—the absence of key decision-makers sends a clear signal about the public sector's hesitancy to address one of its most pressing challenges.
Ultimately, investors have little choice but to wait for definitive and concrete measures that will allow them to properly assess risks and participate in the emerging landscape of opportunities that Venezuela represents today.
