Most of the energy requirements in Venezuela are satisfied using oil, including transportation and power generation, to a lesser extent (approximately 40% of electricity is generated using hydrocarbon power plants). However, for more than two years, Venezuela has not been able to produce the oil needed to satisfy the transportation demand.
There are no legal limitations for foreign companies to invest and operate in the Venezuela natural gas sector. However, there is a tendency for the Venezuelan Government to promote joint ventures, in which PDVSA or one of its subsidiaries has an important participation.
The Ministry of Oil and the Ministry of Trade may establish caps for some products to be sold in the domestic market. In 2020 Venezuela experienced the release of price controls, including new schemes for gasoline sales (see question 2.3 above) and significant fluctuation in the market prices of other oil products.
According to OPEC, Venezuelan crude oil exports averaged 438,000 barrels per day in 2022, while the domestic demand was of 272,000. In 2022, Venezuela produced 266,000, exported 176,000 and imported 88,000 of petroleum products. Oil exports have shown some recovery after the US Sanctions relief, being 780,000 barrels per day in November 2023.
The Ministry of Oil, as the Government entity in charge of setting oil policy and supervising oil activities in Venezuela, may set regulations and guidelines regarding commercial activities in the country.
Currently, Venezuela does not import or export natural gas. Venezuelan plans for exporting gas have been brewing for years, but no fruits have yet been borne. With the 2023 OFAC sanctions relief, PDVSA and Ecopetrol initiated talks to export gas to Colombia. The exports are to be made using the Antonio Ricaurte gas pipeline.