Friday, August 29, 2025

PROPOSALS BY MARIA CORINA MACHADO FOR THE RECOVERY, GROWTH, AND SUSTAINABILITY OF THE VENEZUELAN OIL INDUSTRY

                  


María Corina Machado. Venezuelan opposition leader. Industrial engineer specialized in Finance from IESA and graduate of the World Leaders in Public Policy Programme at Yale University in the United States.


                       

An “extensive privatization programme” of the oil sector is one of the main proposals of Maria Corina Machado, who assures that, in this way, production will recover, and Venezuela will become the energy “hub” of the Americas, by becoming a “stable, safe and reliable provider.”

Privatization, in her opinion, will satisfy “pressing needs of the population,” improve the salaries and working conditions of oil workers and allow for “job creation,” since companies will require Venezuelan “engineers, technicians, employees and workers.”

 

The proposal focuses on revitalizing oil and gas production by attracting specialized international and national companies. Venezuela ranks among the countries with the largest reserves of oil and natural gas worldwide. According to the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA), Venezuela holds reserves of more than 300 billion barrels of oil and 195,2 trillion cubic feet of natural gas. The goal is to steadily increase production to take full advantage of the current global demand for hydrocarbons. 

Because the investment required far exceeds what the Venezuelan State can provide, attracting private capital becomes essential, and privatization is the chosen strategy. All feasible productive activities in the industry will be privatized to secure massive private investments, ensuring a sustained increase in production under conditions that guarantee legal security and an attractive environment for investors. 

The State will continue to collect fiscal revenues through royalties and taxes while establishing conditions that enable private companies to boost production as quickly as possible. In addition, a dedicated Venezuelan Energy and Petroleum Agency will be created to serve as the industry’s regulatory body. Privatizing the oil sector is expected to restore Venezuela’s reputation as a safe and reliable supplier, while simultaneously offering excellent investment opportunities. 

A comprehensive programme is also proposed to privatize public companies and assets, thereby relieving the State of hundreds of inefficient business activities that burden the public sector and drain immense resources through subsidies. This urgency stems from the proliferation of state-controlled business entities—resulting from numerous nationalizations since 2007 and the disorganized creation of new public entities—which now suffer from severe financial difficulties as well as technical and operational deficiencies. 

The funds raised through the privatization programme will finance a massive investment initiative aimed at reactivating economic growth, enhancing the well-being of the population, and increasing the nation’s productive capacity. An efficient and transparent privatization process—based on international best practices—will help reshape public spending, stimulate productivity, and generate increased tax revenues.

 

The Programme’s Four Fundamental Objectives are

Optimize State Assets: Transfer state-held companies and assets to the private sector to improve both the quantity and quality of goods and services. Private sector management will bring in essential capital, expertise, and technology. 

Strengthen Financial Balance: Improve the Republic’s financial management by leveraging underutilized yet valuable companies and assets. This will help reduce the burden of a significant external debt and its associated interest costs. 

Enhance Fiscal Stability: Contribute to a balanced fiscal account, which in turn will promote macroeconomic stability and economic growth by reducing the drain on scarce public funds caused by inefficient public enterprises. 

Focus on Core Functions: Allow the State to concentrate on non-transferable or non-delegable responsibilities, while also considering private management for public services where appropriate.

  

MEDIUM- AND LONG-TERM VISION 

Venezuela is set to become the Energy Hub of the Americas with a global impact by harnessing both its abundant hydrocarbon resources and its vast renewable energy potential. The country aims to re-establish itself as a leading player in the production and refining of hydrocarbons through the privatization of its oil and gas industry. 

At the same time, the nation will revive and develop its extensive renewable energy resources—including hydroelectric, solar, and wind energy, as well as the emerging field of hydrogen energy—to complement oil and gas production. This combined energy strategy is intended to position Venezuela as a major continental and global energy centre. 

Specifically, the country’s hydroelectric potential will be prioritized to boost the contribution of clean and sustainable energy to national electricity consumption and for export. The hydroelectric system in the lower Caroní (including plants such as Guri, Macagua, and Caruachi) currently has an installed capacity of approximately 15,000 MW, while all hydroelectric plants together total around 17,000 MW. In addition, the long-delayed Tocoma plant will be assessed for completion, as it could provide an extra 2,000 MW of clean energy.


Although the country’s peak demand in 2013 could have been almost entirely met by its existing hydroelectric capacity, current output is only about 50% due to insufficient investment, maintenance, and management. Revitalizing the hydroelectric system is therefore a top priority for establishing a national clean energy matrix. 

Venezuela also offers significant opportunities for the development of solar and wind energy across vast areas. Private investment in these sectors will be encouraged to further enhance their share in the national energy mix. 

Additionally, research and investment in hydrogen production for energy applications will be promoted. With substantial investment from both the private sector and the State, Venezuela’s combined hydroelectric and wind energy capacity could exceed 75,000 MW—a figure several times higher than current national consumption. 

Furthermore, Venezuela has a thermal generation potential of nearly 20,000 MW, even though only about 10% is currently operational. This diversified energy portfolio would enable the country to become a major exporter of renewable energy to neighboring nations. For context, the country’s energy demand has fallen from a peak of 18,600 MW in 2013 to about 12,400 MW due to the economic downturn. 

Nevertheless, the proposed expansion will spur increased demand, and the country’s overall generation capacity will not only satisfy domestic needs but also produce a significant surplus for export. This comprehensive energy restoration and development strategy will position Venezuela as a premier international player and a dependable supplier to countries that can benefit from its energy potential. 

Finally, a domestic gas pipeline programme will be progressively implemented in Venezuelan cities. This initiative will leverage the nation’s vast gas reserves through a combination of private investment and targeted public infrastructure spending in areas where private investment alone is not commercially viable.

 

REFERENCES

 

MARÍA CORINA MACHADO: GOVERNMENT PROGRAM

VENEZUELA LAND OF GRACE

Freedom, Democracy and Prosperity

https://drive.google.com/file/d/12AyJy2IhZsMe9Y3joW4y2aX_hS-ygnD6/view



VENEZUELA TIERRA DE GRACIA

La propuesta de María Corina para transformar Venezuela

La propuesta de María Corina para transformar Venezuela


 

PROPOSALS BY MARÍA CORINA MACHADO FOR THE RECOVERY, GROWTH, AND SUSTAINABILITY OF THE VENEZUELAN OIL INDUSTRY

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