Is Venezuela Facing an Energy Crisis?

Venezuela has faced increasingly frequent power outages in recent years, due to decades of underinvestment in the country’s energy infrastructure, much of which has fallen into a state of disrepair. As oil production has decreased and the country’s economy has faltered, residents across Venezuela have been experiencing blackouts on a more regular basis. 

The United States intervention in Venezuela on January 3, which brought an end to President Nicolás Maduro’s 13-year dictatorship, has not, unfortunately, brought about greater energy or economic security, as Venezuela faces years of recovery. 

So, what can be expected for Venezuela’s energy sector in the post-Maduro era?

Background on Venezuela’s Energy Crisis

Venezuela has faced more frequent power outages in recent years, which have left people without power for extended periods of time, as well as further restricted the country’s waning oil production. 

The energy crisis began under former president Hugo Chavez, following the nationalization of several utilities and the passing of the 2010 Electricity Law. Before this time, multiple private-sector and state utilities were delivering power, making for greater competition. 

In 2010, Chavez declared that Venezuela was experiencing a nationwide “electrical emergency,” a situation that has continued to this day. 

Meanwhile, long-standing U.S. sanctions on the export of Venezuelan crude have driven down output, from 3.5 million barrels per day (bpd) in the 1990s to less than 1 million bpd at its lowest point. This has reduced Venezuela’s oil revenues dramatically, leaving little money to invest in the country’s failing energy infrastructure. 

In March 2025, the government responded to the ongoing energy crisis by cutting working hours to reduce power demand. 

U.S. Intervention Hit the Caracas Electric Grid Hard

As part of the United States intervention in Venezuela at the beginning of January, U.S. forces targeted the country’s electric grid. This left southwestern and southeastern Caracas without access to basic power. 

In the days following Maduro’s capture, Venezuela’s Energy Minister, Jorge Marquez, said that the U.S. had inflicted significant damage to transmission infrastructure near Caracas and workers at the National Electric Corporation (Corpoelec) were trying to restore power. Marquez also shared a video on social media showing the extent of the damage to power transmission facilities. 

“I want once again to condemn the terrorist attack on the national electrical system, this time on our country’s power transmission system,” said Marquez. 

In addition, Sky News reported that Caracas residents were living in a “total blackout”, without access to electricity or internet services, following the intervention. 

What to Expect Moving Forward

Following the U.S. intervention, Venezuela’s interim President Delcy Rodriguez announced on January 7 that she planned to propose changes to several laws, including the country’s electricity policy. “We want to update the national electrical service law,” said Rodriguez. “The Venezuela we dream of is a Venezuela that demands an electricity service that is in better conditions.”

Meanwhile, the U.S. Department of Energy said it aimed to “improve the electricity grid, which is essential to increasing oil production, economic opportunity, and the daily quality of life for the Venezuelan people.” 

Venezuela is home to the largest oil reserves in the world, meaning that the South American country should have no shortage of energy. However, years of underinvestment in the sector, due to falling production levels and low oil revenues, mean that rebuilding the industry to its former glory would take several years and billions of dollars in investment. 

While U.S. President Trump is hopeful about the U.S. role in rebuilding Venezuela’s oil industry, the country will likely face several more years of energy crisis before any significant improvement is seen. 

Cuba’s Reliance on Venezuelan Oil and the Era of Blackouts

It is not only Venezuela that is facing an energy crisis following the U.S. intervention. Cuba, which has experienced more frequent, widespread power outages in recent months, is expected to suffer due to the blockade on Venezuelan crude. 

Cuba has come to rely heavily on Venezuela in recent years for its fuel supplies, despite still facing an energy deficit. Venezuela shipped an average of 26,500 bpd of crude to Cuba last year, according to ship tracking data from Venezuela’s state-run oil firm PDVSA. This covered roughly 50% of Cuba’s oil deficit. 

Cuban residents already face almost daily blackouts, which could become more frequent and prolonged if Cuba cannot find an alternative fuel supplier. In recent months, Mexico has increased the quantity of oil it is sending to Cuba to help fill the gap. Mexico sent a daily average of 12,284 bpd of oil to Cuba last year, accounting for around 44% of its crude imports. 

However, Mexico is at risk of worsening its relations with the Trump administration if it continues to ship fuel to Cuba, as the White House seeks to finalize an agreement with the Caribbean island.

To this end, Trump posted on his Truth Social platform, “THERE WILL BE NO MORE OIL OR MONEY GOING TO CUBA – ZERO!” He added, “I strongly suggest they make a deal, BEFORE IT IS TOO LATE.” 

Both Venezuela and Cuba could, therefore, face worsening energy crises in the wake of the United States intervention in Venezuela unless rapid action is taken to improve energy infrastructure and restore vital fuel supplies. 

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