Oil Companies in ‘Active’ Talks Over Recouping Venezuela Losses
Read More: Oil Companies in ‘Active’ Talks Over Recouping Venezuela Losses ...........................................
For oil and mineral companies, the potential prize is huge. While Venezuela’s recent oil production has struggled to reach 1 million barrels per day, it was pumping out more than three times that in the 1990s. Similarly, the country has sizable reserves of high-quality thermal coal — and made a bid to revive output last year — after production plummeted from 2000, when annual levels were around 8 million tons.
Venezuela also has some of the largest gold deposits in the Western Hemisphere, as well as diamonds and iron ore. And the country lays claim to a host of critical minerals, including bauxite and copper. But simply safely accessing those deposits — much less mounting major commercial extraction efforts — poses risk, with many mines in southern Venezuela long under the control of criminal groups.
Human rights and conservation groups have warned about the toll of extraction in the region’s illegal mines, which they say imperils children, workers and the environment. Just as US officials pressed Venezuela to overhaul its petroleum law — seen essential to enable the return of Western companies — they are expected to seek changes around mining too.
Corp. previously mined coal in the country as a part owner of the Paso Diablo mine in northwest Venezuela near Colombia. However, Venezuela refused to renew Peabody’s license in 2013.
That history has driven caution by some oil and mining companies that are wary of pouring tens of billions of dollars into the country over the next decade, amid persistent concerns about the stability of a post-Maduro government. For coal interests, uncertain demand presents another challenge; usage was flat in 2025 and is expected to slowly decline, according to the International Energy Agency.
“I would think there would be a lot of hesitation about going back in to Venezuela,” said Andy Blumenfeld, director of data analytics at McCloskey by OPIS.
For oil and mineral companies, the potential prize is huge. While Venezuela’s recent oil production has struggled to reach 1 million barrels per day, it was pumping out more than three times that in the 1990s. Similarly, the country has sizable reserves of high-quality thermal coal — and made a bid to revive output last year — after production plummeted from 2000, when annual levels were around 8 million tons.
Venezuela also has some of the largest gold deposits in the Western Hemisphere, as well as diamonds and iron ore. And the country lays claim to a host of critical minerals, including bauxite and copper. But simply safely accessing those deposits — much less mounting major commercial extraction efforts — poses risk, with many mines in southern Venezuela long under the control of criminal groups.
Human rights and conservation groups have warned about the toll of extraction in the region’s illegal mines, which they say imperils children, workers and the environment. Just as US officials pressed Venezuela to overhaul its petroleum law — seen essential to enable the return of Western companies — they are expected to seek changes around mining too.
Mining companies have also lost assets in Venezuela when industries were effectively nationalized. Peabody Energy Corp. previously mined coal in the country as a part owner of the Paso Diablo mine in northwest Venezuela near Colombia. However, Venezuela refused to renew Peabody’s license in 2013.
That history has driven caution by some oil and mining companies that are wary of pouring tens of billions of dollars into the country over the next decade, amid persistent concerns about the stability of a post-Maduro government. For coal interests, uncertain demand presents another challenge; usage was flat in 2025 and is expected to slowly decline, according to the International Energy Agency.
“I would think there would be a lot of hesitation about going back in to Venezuela,” said Andy Blumenfeld, director of data analytics at McCloskey by OPIS.
Some executives have told the Trump administration they are looking for guarantees of physical and financial security to further whet their appetite for a return.
— With assistance from Will Wade
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