María Corina Machado in CERAWeek: Venezuela could quintuple its oil production once democracy is restored

Venezuelan opposition leader María Corina Machado said Tuesday during her speech at the CERAWeek by S&P Global conference in Houston that Venezuela could significantly increase its oil production if it achieves a democratic transition and implements deep reforms in its energy sector. During her speech before industry leaders, the Nobel Peace Prize winner presented a plan to transform the Venezuelan oil industry from a state-controlled model to a completely private one.

According to Machado's proposal, crude oil production in the South American country could increase from approximately 1 million barrels per day to up to 5 million, surpassing even the highest historical levels. However, the opposition leader also pointed out that this growth depends on the holding of free and fair elections and the establishment of a democratically elected government, adding that this transformation would require an estimated investment of $150 billion over the next decade. "We’re grateful for these early efforts that President Trump’s administration and [Energy] Secretary [Chris] Wright have done, and we recognize the importance in opening this new chapter for our country. What comes next, though, must go further," Machado said.

"The Venezuelan state will get out of the way"

Since the capture of dictator Nicolás Maduro last January 3, lthe Trump administration has sought to balance increased oil production with a push for political changes, interacting with figures such as Delcy Rodríguez, who replaced the socialist tyrant and now serves as the highest authority in the Chavista regime. Still, uncertainty persists as to whether Venezuela will move toward elections.

As reported by The Wall Street Journal, under Machado's plan, the state-owned Petróleos de Venezuela (PdVSA) would be significantly reduced and the government's role would be limited to an independent regulatory body charged with overseeing the sector. "The Venezuelan state will get out of the way. The oil and gas sector in Venezuela will go fully private," stated Machado, who also explained that his proposal contemplates limiting royalties to 20% and granting international companies full control of production, with stable fiscal conditions guaranteed in the contracts.

Likewise, Machado presented Venezuela as a reliable energy alternative in the midst of global instability, pointing out the interruptions linked to tensions in Iran and highlighting the country's geographic proximity to the United States, only five days away by sea.

Earlier this year, Venezuela's National Assembly approved a sweeping reform of its oil legislation following Maduro's extraction. Although the new framework allows greater operational freedom for foreign companies, industry leaders have noted that more changes will be needed to achieve Trump's goal of attracting $100 billion in investment.