María Corina Machado has unveiled a sweeping plan to completely privatize Venezuela’s oil and gas sector, marking one of the most dramatic proposed overhauls of a national energy industry in recent decades. Speaking to global energy leaders and investors, Machado positioned the move as central to rebuilding the country’s economy and restoring investor confidence.

Addressing executives at a major industry gathering in Houston, Machado described a future where the Venezuelan state steps back from direct involvement in oil production, allowing private companies to take full control of operations. The government, under her vision, would instead act strictly as a regulator, ensuring transparency, enforcing contracts, and creating stable conditions for long-term investment.

At the center of her criticism is Petróleos de Venezuela, commonly known as PDVSA, which she described as having deteriorated into a deeply inefficient and compromised institution. Once a powerhouse capable of producing over 3 million barrels per day, PDVSA now oversees output of roughly 1 million barrels per day, reflecting years of underinvestment, sanctions, and operational decline.

Machado’s roadmap outlines a phased transition. In the early stages, the size and influence of PDVSA would be significantly reduced while maintaining essential operations. Over time, the entire production chain—from exploration to refining—would be opened to private ownership and international participation.

The scale of the opportunity, however, is matched by the magnitude of the challenge. Venezuela holds the world’s largest proven oil reserves and has the potential to produce more than 5 million barrels per day. Achieving that level would require an estimated $150 billion in investment over the next decade, spanning infrastructure upgrades, new drilling projects, and modernization of aging facilities.

Beyond energy policy, Machado emphasized that political reform is a prerequisite for economic recovery. She stated that establishing the conditions for free and fair elections would take at least nine months, highlighting the need for institutional stability, rule of law, and protection of property rights. These factors, she argued, are essential to attracting global capital back into the country.

Her political trajectory has been shaped by ongoing tensions with the current establishment. Machado was barred from running in the 2024 presidential election under the government of Nicolás Maduro, and she continues to lead the opposition movement advocating for democratic transition and market-oriented reforms.

Despite growing international interest, major oil companies remain cautious. Industry giants such as Exxon Mobil and ConocoPhillips have indicated that they will not re-enter the Venezuelan market without substantial political and legal guarantees. Both companies previously had assets expropriated during the administration of Hugo Chávez in 2007, resulting in long-standing disputes and billions of dollars in unresolved claims.

Executives have stressed that any return would depend on clear mechanisms for recovering past losses, as well as assurances around contract enforcement, security, and regulatory consistency. Concerns also extend to policy continuity, particularly how future U.S. administrations might approach Venezuela, adding another layer of uncertainty for investors.

Machado acknowledged these challenges, emphasizing that rebuilding trust will require not only structural reforms within Venezuela but also stable international relationships. Her proposal aims to reposition the country as a competitive destination for global energy investment, leveraging its vast reserves while aligning with modern market principles.

If implemented, the plan would represent a historic shift away from decades of state control toward a fully liberalized energy sector. For global investors, it presents both a high-risk and potentially high-reward opportunity in one of the world’s most resource-rich yet underdeveloped oil markets.