# Venezuela Natural Resources Explained 2026

> Venezuela's oil reserves, gas output, and mining sector face US sanctions and environmental costs.
- Title: Venezuela Natural Resources Explained 2026 · The Rio Times
- Summary: Venezuela's oil reserves, gas output, and mining sector face US sanctions and environmental costs. Venezuela has the world's largest oil reserves but low…
- Keywords: venezuela, oil, gas, mining, us sanctions, hydrocarbons, venezuela oil output, venezuela mining law, venezuela power index, venezuela resources, news, world
- Source: The Rio Times — https://riotimesonline.com/venezuela-natural-resources-explained-2026
- Author: Contributing Reporter
- Published: 2026-10-19T09:16:52+00:00
- Read time: 2 min
- Topics: venezuela, oil, gas, mining, us sanctions, hydrocarbons, venezuela oil output, venezuela mining law, venezuela power index, venezuela resources, news, world
## Key Facts
Venezuela is a South American country on the Caribbean coast with 28.5 million people in 2025. Its economy was about US$99.7 billion that year and still rests on oil.
## Oil Reserves
Venezuela has 303 billion barrels of proven oil reserves as of 2023, the largest in the world. Output was 1,206,000 barrels a day in September 2026 on official figures.
## Gas Reserves
Gas reserves were 195 trillion cubic feet in 2023, about 73% of South America's total, yet output sits far below its 2001 peak.
## Minerals
Formal gold output was estimated at only 480 kilograms a year in 2017 to 2019. The Orinoco Mining Arc covers about 112,000 square kilometres.
## Water and Forests
Hydropower supplied about 64% of electricity in 2021. Forest covered 53.4% of the land area in 2024.
## New Laws
A reform of the Hydrocarbons Law was approved on 29 January 2026, and a new mining law passed the National Assembly on 9 April 2026.
## Power Index
Venezuela ranks 13th of 14 in The Rio Times Latin America Power Index with 27.0 points (October 2026 edition).
## Oil Production
Venezuela told OPEC it pumped 1,206,000 barrels a day in September 2026, while OPEC's secondary sources put the figure at 1,150,000.
## Oil Prices
Merey 16, Venezuela's heavy export grade, averaged US$93.75 a barrel in September 2026, up US$16.93 from August.
## US Sanctions
OFAC lists General Licence 46E of 28 September 2026 for activities involving Venezuelan-origin oil. Payments tied to PDVSA generally flow through US-controlled accounts.
## Gas Flaring
Industry estimates put flaring, the burning of unused gas, near 706 billion cubic feet in 2022. Burning that gas wastes fuel and releases emissions without earning revenue.
## Mining Law
The National Assembly approved a new mining law on 9 April 2026 with royalties of up to 13% for private, foreign and mixed companies.
## Environmental Cost
CSIS described environmental devastation and humanitarian risks from illegal mining in 2020. A confirmed national tally of damaged forest or polluted rivers is not available.
## US Readers
Investors should treat every Venezuelan counterpart as licence-dependent. OFAC amended several general licences in September 2026, so the legal basis of a deal can change within weeks.
## What Next
The mining law approved on 9 April 2026 is not confirmed as in force. Environmental damage from illegal mining remains a major concern.
## Key takeaway

Venezuela has the world's largest oil reserves but low production, with US sanctions shaping oil deals and environmental damage from gas flaring.