Venezuela Ends State Oil Monopoly, Opens Industry to Private Control
CARACAS, Venezuela — In a dramatic shift that marks a turning point for Venezuela’s oil sector, acting President Delcy Rodriguez signed a new law on January 30, 2026, effectively ending the state monopoly over the country’s oil industry. This move reverses more than two decades of socialist control and opens the door for private companies, including foreign investors, to take a leading role in managing Venezuela’s vast petroleum resources.
The overhaul comes less than a month after the United States captured Nicolás Maduro, the former Venezuelan leader who had maintained tight control over the oil sector since his rise to power. Rodriguez, who served as Maduro’s vice president, now faces mounting pressure from the Trump administration to liberalize the industry and attract investment to revive Venezuela’s struggling oil production.
On January 10, 2026, President Donald Trump hosted nearly two dozen top executives from American oil and gas companies at the White House, where he announced plans for U.S. energy firms to invest $100 billion to rehabilitate Venezuela’s deteriorating oil infrastructure. Trump described the country’s oil facilities as “rotting” and emphasized the potential for Venezuela to become a major energy supplier once again. The administration’s easing of sanctions on Venezuela’s oil sector signals a strategic pivot aimed at fostering economic growth and geopolitical influence in the region.
Rodriguez’s legislation dismantles the state monopoly that had been a hallmark of Venezuela’s socialist policies since the nationalization of the oil industry in the 1970s. The law allows private companies to operate oil fields, manage production, and enter into joint ventures with the government, a significant departure from the previous model where the state-owned company Petróleos de Venezuela, S.A. (PDVSA) held exclusive control.
Energy analysts note that Venezuela’s oil reserves remain among the largest in the world, but years of mismanagement, underinvestment, and sanctions have severely curtailed output. The new legal framework aims to reverse this decline by incentivizing private sector participation and foreign direct investment. The U.S. Department of Energy has highlighted the potential for increased production to stabilize global oil markets and create jobs.
While the Trump administration has welcomed the reforms, some experts caution that the transition could face challenges, including political instability and regulatory uncertainties. The U.S. Department of State continues to monitor developments closely, emphasizing the importance of transparent governance and adherence to international standards.
Rodriguez’s decision also comes amid broader geopolitical tensions in Latin America, with the United States seeking to counter influence from rival powers in the region. The U.S. Department of Energy has expressed optimism that the opening of Venezuela’s oil sector could contribute to energy security for the Western Hemisphere.
As Venezuela embarks on this new chapter, the international community will be watching how effectively the government implements the reforms and whether private investment can revive a once-thriving industry. The success of this transition could have far-reaching implications for the global energy landscape and the economic future of Venezuela.
For more information on U.S. energy policies and international cooperation, visit the U.S. Energy Information Administration and the U.S. Department of the Treasury websites.
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