Saudi Finance Minister confirmed that an increase in Venezuela’s oil production, as desired by the United States following the abduction of President Nicolas Maduro in early January, “will not have a significant impact on the oil market.”
He stated during a roundtable at the conclusion of the Davos Economic Forum in the Swiss Alps: “I believe we will not see a major impact on the oil market,” adding, “Any increase in production will take time and require significant investments.”
Despite Donald Trump’s ambitions for Venezuela’s oil, major oil companies remain cautious about investing heavily in its infrastructure.
Venezuela’s Large Reserves
Venezuela possesses the world’s largest crude oil reserves, reaching 303,221 million barrels, ahead of Saudi Arabia (267,200 million) and Iran.
However, years of mismanagement and corruption have led to a decline in production from its peak of over 3 million barrels per day to a historic low of around 350,000 barrels in 2020.
According to the Saudi Finance Minister, “It is essential to ensure that the estimation of energy demand and supply, as well as the price levels presumed to attract investments to the oil market, actually encourages investors without harming the global economy.”
Venezuela
Venezuela is a South American country with a rich history, originally inhabited by indigenous peoples before becoming a Spanish colony in the 16th century. It gained independence in the early 19th century under Simón Bolívar and later rose to global economic prominence in the 20th century due to its vast petroleum reserves. Its cultural sites include the UNESCO-listed Coro and its port, a well-preserved example of colonial architecture, and Canaima National Park, home to the iconic Angel Falls.
United States
The United States is a federal republic founded in 1776 following its Declaration of Independence from Great Britain, establishing itself through a revolutionary war and the subsequent adoption of its Constitution in 1789. It grew from thirteen original colonies to span the North American continent, becoming a global superpower shaped by waves of immigration, industrial expansion, and a civil war that ended legal slavery. Its diverse culture and political system have had a profound worldwide influence throughout the 20th and 21st centuries.
Saudi Arabia
Saudi Arabia is a Middle Eastern nation founded in 1932 by King Abdulaziz Al Saud, unifying the regions of Najd and Hejaz. It is the birthplace of Islam, home to the religion’s two holiest cities, Mecca and Medina, which are central to the annual Hajj pilgrimage. The country’s modern history and economy have been profoundly shaped by its vast reserves of petroleum, discovered in the 1930s.
Davos Economic Forum
The Davos Economic Forum, officially known as the World Economic Forum (WEF), is an annual meeting held in Davos, Switzerland, bringing together global political and business leaders. Founded in 1971 by economist Klaus Schwab, it was initially focused on European business management but has since evolved into a major platform for discussing global economic, political, and social issues.
Swiss Alps
The Swiss Alps are a major mountain range in Switzerland, renowned for their stunning natural beauty and outdoor recreation. Historically, the region has been shaped by glaciation, alpine farming, and the development of tourism, particularly from the 19th century onward with the arrival of railways and mountaineering.
Iran
Iran, historically known as Persia, is home to one of the world’s oldest continuous civilizations, with a rich cultural history spanning thousands of years. It features numerous UNESCO World Heritage sites, including the ancient ruins of Persepolis, the magnificent architecture of Isfahan’s Naqsh-e Jahan Square, and the sophisticated engineering of its historic Persian gardens. The country’s cultural identity is deeply rooted in its pre-Islamic Zoroastrian heritage and its later role as a major center of Islamic art, science, and literature.
