In a recent Science Friday interview, SPE President Jennifer Miskimins explained why Venezuela’s vast oil reserves are far more complex than headlines suggest. While the country holds large reserves, much of it is heavy oil—thick, tar-like, and difficult to produce and refine. Unlike lighter crudes that readily make gasoline, Venezuela’s heavy oil is better suited for products such as diesel, jet fuel, and asphalt. Its downstream processing requires specialized refineries, many of which are located along the US Gulf Coast.
She noted that heavy oil often contains higher sulfur content, requiring additional processing steps before it can be converted into usable fuels. Producing it is also costly: wells may require pumps, heating methods to improve flow of the sluggish oil, and extensive infrastructure. In Venezuela’s case, years of neglected facilities add another major challenge, making redevelopment a long-term effort that could take a decade or more and tens of billions of dollars in investment.
She emphasized that not all oil can be used to make the same products, which explains why countries often simultaneously import and export different types of crude. Increased Venezuelan oil supply would be more likely to affect prices for diesel or jet fuel than for gasoline, unless additional processing is applied.
Miskimins highlighted that while Venezuela’s resources are strategically significant, the combination of technical difficulty, infrastructure redevelopment, and financial risk makes companies cautious.