Venezuela's Oil Minister Pitches 'Entire World' of Opportunities to U.S. Investors
Source: Fortune. Casualplayhub News adds summary, context, and editorial framing while linking back to the original report.
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Venezuela’s new petroleum minister is presenting her country not as a dilapidated former oil titan, but as an emerging energy economy brimming with opportunity for U.S. and foreign investment in both onshore and offshore oil and gas exploration. Paula Henao, who assumed the role of hydrocarbons minister in March following the forced departure of former leader Nicolás Maduro, addressed a packed Houston energy audience on Wednesday, declaring that Venezuela offers far more than its iconic heavy crude.
Speaking in Spanish at the upscale Post Oak Hotel, Henao outlined more than 916 exploration prospects awaiting foreign capital. She cited an estimated 192 trillion cubic feet of natural gas reserves and the world’s largest proven oil reserves, exceeding 300 billion barrels. “It’s an entire world waiting to be discovered, just waiting for us to reach these agreements so we can develop these new areas,” she said.
Joining her were leaders of the state-owned oil company, PDVSA, who were in Houston for meetings and a showcase event ahead of the larger Venezuela Energy Week scheduled for February in Caracas. PDVSA Vice President Jovanny Martinez urged the crowd: “Go to Venezuela to invest, go to Venezuela to develop businesses there. We are at the right place at this historical moment. We have the energy that the world requires.”
Despite the enthusiasm, a legacy of policy volatility weighs heavily. After decades of cycling between energy reform and renationalization—most notably the 2007 appropriation of assets from ExxonMobil, ConocoPhillips, and others—investors remain cautious as Venezuela revises its hydrocarbon laws following Maduro’s ouster. Many recognize this could be the last great chance for the country’s energy sector to revive.
President Donald Trump has repeatedly insisted that U.S. oil companies will invest more than $100 billion to rebuild Venezuela’s crumbling infrastructure. But apart from Chevron, which never left, most large U.S. energy firms are taking a wait-and-see approach, even as Exxon expresses optimism. BP and Shell plan to invest in offshore Venezuelan gas fields near Trinidad and Tobago. Meanwhile, smaller private U.S. producers are moving first.
A day before the Houston event, Venezuela signed new oil production agreements with Hunt Oil, a Dallas-based private producer, and SLB, the major oilfield services firm that already works with PDVSA and Chevron in Venezuela. Hunt CEO Hunter Hunt said in a statement that the company is “proud to be one of the first American companies to sign an agreement with PDVSA to help expand Venezuela’s oil and gas production, and we are looking forward to expanding our presence in the country.”
Another deal expected soon is with Denver-based Crossover Energy, which sees more upside in Venezuelan oil—both mature and exploratory fields—than in pricier U.S. shale acreage. “Hopefully we can jump the line by taking a little more risk,” Crossover CEO Eric McCrady told Fortune at the Houston event. “We think that’ll open up more opportunities on the back end with more fields, and growth beyond what we have today.”
Crossover has already acquired a local Venezuelan operator to establish an on-the-ground presence and workforce. McCrady expects to sign new productive participation contracts within “a few days or a few weeks.” The plan is to begin operating Venezuelan wells in January, delayed a few months due to the devastating earthquakes that struck the country in June.
“In the oil industry you’re always managing risks,” McCrady said. “I think the risks here are more above-ground—the labor force, equipment availability, the political situation—versus below-ground geologic risk, well failure risk, things like that. We’re comfortable taking risks. I think by being one of the leading companies to get in, it gives us an opportunity to hire the right team and hopefully get moving first so we have access to services and equipment.”
He acknowledged that more work is needed within the country to strengthen the power grid, develop infrastructure for transporting and processing natural gas, and refine laws for regulatory and contract certainty.
Since last year, Venezuela’s oil production has risen from just under 1 million barrels per day to more than 1.2 million, an increase of nearly 250,000 barrels daily. Largely led by Chevron, that growth has come from optimizing existing wells rather than deploying new drilling rigs and teams. Venezuela’s oil industry last produced over 3 million barrels per day at the beginning of this century and was still above 2 million barrels a day a decade ago.
Simon Sjøthun, a partner at Rystad Energy, said the world will need Venezuelan oil over time as existing resources deplete, especially with global oil demand projected to remain stubbornly high for decades. He believes Venezuela could again exceed 3 million barrels daily by 2040. McCrady is more optimistic. He thinks Venezuela can reach 3.5 million barrels per day within five to ten years, drawing a parallel to the rapid boom of West Texas’ Permian Basin.
Modern U.S. drilling techniques could transform Venezuelan output, McCrady said. “Venezuela has been isolated from the world stage for almost 25 years. With the right legal framework and bringing U.S. investment in, I think 3.5 million [barrels daily] will be reached a lot faster than 15 years. We see tremendous opportunity.”
Article commentary
Venezuela’s renewed pitch to foreign investors marks a critical juncture for a nation whose oil industry has been in decline for two decades. The rhetoric from Minister Paula Henao and PDVSA executives is strategic—framing the country as an untapped frontier rather than a cautionary tale. This narrative shift is necessary to overcome deep-seated investor skepticism rooted in a history of expropriation, political instability, and infrastructure decay. The numbers are compelling: over 300 billion barrels of proven oil reserves and 192 trillion cubic feet of natural gas. Yet, the gap between potential and reality is vast. Current production hovers around 1.2 million barrels per day, a fraction of the 3 million-plus achieved in the late 1990s. The increase from just under 1 million barrels earlier this year is encouraging, but it stems largely from optimizing existing wells, not new drilling. Sustained growth requires significant capital, modern technology, and regulatory stability. The Trump administration’s pledge of $100 billion in U.S. investment is eye-catching, but the actual response from major oil companies remains cautious. Chevron, which never left, is a notable exception. Others like Exxon are expressing optimism but have not committed heavily. BP and Shell’s focus on offshore gas fields near Trinidad demonstrates a preference for lower-risk ventures. The early movers are smaller, private firms like Hunt Oil, SLB, and Crossover Energy, willing to take on above-ground risks for potentially outsized returns. The political landscape is another wild card. The ouster of Nicolás Maduro has created a window of opportunity, but the new government’s legal framework is still evolving. Investors need clear contract terms, protection against expropriation, and reliable enforcement. The recent signing of agreements with Hunt Oil and SLB is a positive step, but broader participation will depend on consistent policy implementation. Comparisons to the Permian Basin are instructive. The Permian’s boom was driven by a favorable regulatory environment, advanced drilling techniques, and robust infrastructure. Venezuela lacks all three. Rebuilding the power grid, natural gas processing, and transport networks will require time and money. McCrady’s five-to-ten-year timeline for reaching 3.5 million barrels per day seems ambitious, especially given the country’s recent history of earthquakes and political turmoil. Global oil demand is expected to remain high for decades, making Venezuelan resources strategically important. Rystad Energy’s more conservative forecast of 3 million barrels per day by 2040 may be realistic if investment flows steadily. The key will be whether the new government can sustain momentum and provide the certainty that large-scale investors demand. Ultimately, Venezuela’s oil revival hinges on trust. The minister’s message—an entire world waiting to be discovered—must be backed by deeds. For now, the early movers are betting on a turnaround, but the rest of the industry is watching closely. The next few years will determine whether Venezuela becomes a new energy frontier or another missed opportunity.