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2026-06-25 Caribbean-Latin America

The Lucky List: Who Are European Oil Workers Working For in Venezuela?

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Posted by badanov 2026-06-25 00:00|| E-Mail|| Front Page|| [1819 views ] Top

1 Wonder what yesterday's earthquakes did to the aged oil infrastructure.

[AI]
Venezuela oil infrastructure needs billion dollar overhaul

Venezuela's oil industry requires an estimated **$80 billion to $100 billion** in investment over the next decade to restore production to its late-1990s peak of 3 million barrels per day. Current output stands at roughly **800,000 barrels per day**, less than 1% of global supply, due to decades of mismanagement, nationalization, and U.S. sanctions that have left infrastructure in severe disrepair.

**Infrastructure Decay** is the primary barrier, with PDVSA reporting that its Paraguana Refining Center operates at only **10% of capacity** and many pipelines are over 50 years old. Restoring pipeline networks alone is estimated to cost **$8 billion**, while fixing onshore storage and wellheads requires immediate attention to prevent further production losses. Less than **2,000 of 12,000 oil wells** in the critical Orinoco Belt are currently functional.

**Investment Challenges** remain high despite recent U.S. government efforts to encourage American companies to re-enter the market. Chevron is the only major U.S. operator still active, producing about **240,000 barrels per day**, while other firms like Exxon Mobil and ConocoPhillips seek compensation for assets expropriated in 2007, with outstanding arbitration awards totaling **$12 billion**. Analysts warn that even with political stability and sanctions relief, reaching pre-crisis production levels would take **7 to 10 years** and require sustained capital commitment amidst significant geopolitical risk.

Posted by Skidmark 2026-06-25 08:48|| 2026-06-25 08:48|| Front Page Top

2 I worked with severals then-young Venezuelan engineers a few decades ago. Top notch people. Part of our operating agreement with Venezuela was that we had to employ/train their people in the US if we wanted to place our people in Venezuela. Most of the oil countries had similar policies but the African ones seemed like luxury ‘jobs’ for connected people and they neither worked nor learned, just got paid, as part of the price we paid to produce their oil. Not the case for Venezuela, in my experience.

Posted by Glenmore 2026-06-25 18:30|| 2026-06-25 18:30|| Front Page Top

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