Venezuela’s oil collapse was a slow, man‑made breakdown of what had been one of the world’s most capable state oil sectors, driven first by policy choices and mismanagement and only later worsened by sanctions.[1][7]
From peak to crisis
- In 1998, Venezuela produced about 3.4 million barrels per day, making it a top global exporter and the backbone of a petrostate model where oil supplied roughly 95% of export revenues. ⭐ [6][1]
- Over the next two decades, output fell by roughly 3 million barrels per day, dropping to around 500,000 barrels per day by 2020, an unprecedented collapse for a country not at war and with still‑massive reserves. ⭐ [5][7]
Mismanagement and politicization
Corruption and underinvestment
Oil price shock and sanctions
Economic and social fallout