The Future of the Oil and Gas Industry in Venezuela in the Years to Come amidst a Challenging Environment of Economic Sanctions, World Recession, a Pandemic, and the Energy Transition

Abstract

This essay concisely explains the complex condition of the Venezuelan oil and gas industry and its legal, political, and financial hurdles, exploring what has been the history and context in which the COVID-19 pandemic arrived. Building on a complicated global situation surrounded by the pandemic, it asks and gives answers to: What could be expected to recover an economy dependent on the energy industry, based on an evaluation of legislation in force, its impact on private investments and an appraisal of bills and restructuring projects. Arguments were divided into the current situation, national and international actions for restructuring the oil industry, and the future of the national oil company. The analysis suggests that great changes are necessary for the future of the Venezuelan energy industry with a new public policy agenda mainly driven by private investments, while the energy transition has already started. The conclusion indicates that it is mandatory to assume the recovery of the traditional hydrocarbons sector in Venezuela to point the industry in the transition to decarbonized energy sources, in a world that is struggling with COVID-19.