Why is Venezuela broke despite holding the world's largest oil reserves?

R4U
Rojgar4u Team January 03, 2026
34
Why is Venezuela broke despite holding the world's largest oil reserves?
Venezuela, which was attacked by US on Saturday, has the world's largest proven reserves of oil but is still broke. This is because oil production in Venezuela has collapsed due to decaying infrastructure, while revenue leaks through international sanctions, intermediaries and black-market channels. Additionally, Venezuelan oil is heavy, like sticky tar, and needs high-level refinement before use.
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