Venezuelas Broken Oil Industry and Trumps Plan to Rebuild It After Maduros Ouster

General view of the “El Palito” refinery building in Puerto Cabello, Venezuela, on Dec. 18, 2025. Jesus Vargas/Getty ImagesVenezuela holds the world’s largest proven oil reserves, yet its petroleum industry—once among the most productive on earth—has been reduced to a fraction of its former capacity after years of mismanagement, underinvestment, and international sanctions.The long-running gap between Venezuela’s vast oil wealth and its collapsing production has taken on new urgency after President Donald Trump announced on Jan. 3 that U.S. forces captured Venezuelan President Nicolás Maduro and that Washington would temporarily run the country while U.S. oil companies move in to rebuild its failing energy infrastructure.