Luisa Palacios on Rebuilding Venezuela's Oil Industry After the Quakes

Venezuela’s energy sector faces a complex recovery process defined by political instability, humanitarian crises, and shifting U.S. sanctions. While oil production has stabilized and partially recovered to 1.2 million barrels per day, long-term growth remains constrained by institutional decay and the impact of recent, devastating earthquakes. New regulatory reforms, including the elimination of PDVSA’s monopoly, signal a move toward a more open investment environment, yet significant risks persist regarding contract enforcement and the lack of transparency in financial data. Dr. Luisa Palacios, former chairwoman of CITGO, emphasizes that while these legal changes are necessary, they are insufficient without broader governance improvements and a clear, self-sustaining political transition. Ultimately, the path to restoring Venezuela’s energy potential requires addressing deep-seated structural issues, resolving outstanding debt, and aligning economic policy with the needs of a population struggling under the weight of a prolonged humanitarian emergency.