Venezuela’s recovery from the June 24 earthquakes has grown increasingly costly as the death toll has risen, infrastructure damage has become clearer, and reconstruction has placed new pressure on an already fragile economy. At the same time, Caracas’ oil sector has continued to expand across multiple fronts.
By mid-August, the death toll from the natural disaster had risen to approximately 6,300, up from 5,546 reported roughly one month after the earthquakes. In addition, independent registries have suggested that the number of missing people may be considerably higher than official figures indicate. More than 1,400 aftershocks have struck Venezuela since June 24, including tremors strong enough to damage buildings further and prolong disruptions to electricity, water, transportation, and other basic services.
The World Bank estimated in late July that the earthquakes caused approximately $19.6 billion in direct physical damage. Residential property accounted for the largest share, followed by infrastructure and non-residential buildings. Reconstruction costs could ultimately be substantially higher than the direct-damage estimate as Venezuela replaces destroyed buildings, clears debris, and repairs damaged electricity, water, transportation, and public-service networks.
The economic effects from the disaster are already visible. Venezuela’s central bank reported that inflation reached 19.9 percent in July alone, up from 13.8 percent in June. Reuters calculated estimated annual inflation at approximately 576 percent. The central bank attributed part of the acceleration in rising prices to earthquake-related disruptions to the distribution of goods. The disaster has also increased demand for government spending just as interim authorities are attempting to restore economic activity and rebuild the country’s principal source of revenue: its oil industry.
Venezuela’s crude and fuel exports averaged approximately 1.16 million barrels per day (bpd) in July, according to shipping data reported by Reuters. Although that total was slightly below 1.20 million bpd in June and 1.24 million bpd in May, the destination of those exports shifted markedly toward the United States. Shipments to US refiners reached approximately 786,000 bpd in July, their highest level since early 2019. Exports to India, in contrast, declined from approximately 277,000 bpd in June to 178,000 bpd in July, while shipments to Europe fell from roughly 99,000 bpd to 82,200 bpd.
The shift has increasingly tied Venezuela’s recovery to the US refining system. US Department of Energy Under Secretary Kyle Haustveit said on August 18 that more than 500,000 bpd of Venezuelan crude, roughly half of the country’s current production, was reaching American refineries.
Oil products are also moving in the opposite direction. Haustveit said that more than 100,000 bpd of US-produced naphtha (a light petroleum product used in gasoline and chemicals) was flowing into Venezuela. Producers mix lighter hydrocarbons such as naphtha with Venezuela’s extra-heavy Orinoco Belt crude to make it easier to transport and export. Shipping data showed Venezuela importing approximately 81,000 bpd of heavy naphtha in July. Venezuela also exported approximately 324,000 metric tons of oil byproducts and petrochemicals during the month, up from 224,000 metric tons in June.
Production estimates have also moved upward. The International Energy Agency estimated that Venezuelan crude output increased from approximately 1.08 million bpd in June to 1.12 million bpd in July. Data provided by the US oilfield services company Baker Hughes show only two active onshore drilling rigs in Venezuela at the end of July. However, the oilfield services company SLB said on August 19 that it has as many as 15 rigs already positioned in Venezuela that could return to service within one year. SLB executives said that as many as four could be reactivated before the end of 2026 if the company secures the necessary contracts.
As for challenges, industry executives have at times cited unreliable electricity, deteriorating transportation infrastructure, permitting delays, shortages of specialized equipment, and the need for steady diluent supplies as obstacles to expansion. Venezuela also faces an estimated natural-gas deficit of approximately 500 million cubic feet per day. SLB expects oil production to increase over the next two years but has questioned whether those gains can be sustained without a substantially greater investment in supporting infrastructure.
Venezuela’s refining system poses an additional challenge. A late-July Reuters assessment estimated that fully restoring the country’s refineries could require at least $20 billion. The 955,000-bpd Paraguana refining complex continues to operate well below its designed capacity. The earthquakes also knocked the El Palito refinery offline after damaging a key power-transmission line. El Palito restarted in mid-July, but additional maintenance and post-earthquake inspections were expected.
In addition, some major US producers remain cautious about investing in Venezuela. ExxonMobil and ConocoPhillips have emphasized the need for stronger contractual and investment protections before committing substantial capital.