Venezuela’s hopes for an oil sector revival face steep barriers, says Baron Lamarre, former Petronas trading head. Decades of neglect have left infrastructure and ecosystems severely damaged, especially in Lake Maracaibo and the Orinoco Belt.

Environmental remediation demands advanced technology and massive capital, which Venezuela lacks. Lamarre estimates clean-up efforts require multibillion-dollar investments and offer no quick returns, deterring foreign investors wary of long-term risks.

Political instability remains the core concern for energy firms. Despite potential sanctions relief, companies fear policy reversals and expropriation. A stable, legitimate government is essential to rebuild regulatory frameworks and attract the long-term oil investments needed for recovery.

Without institutional reform and credible governance, Venezuela’s oil output is unlikely to rebound soon, leaving global markets unaffected by its vast reserves.