Which country has the world’s largest oil reserves, and what happens next? |

Till date, oil still counts as one of the most essential and strategic products in the world economy. It powers transportation networks, supports industrial production and still defines geopolitics and global trade. Even as the use of other sources of renewable energy grows, oil continues to be the primary way we’re meeting the world’s energy needs and is still the largest single source of primary energy supply globally.As the cornerstone of the modern economy, crude oil is indispensable. It is further processed into gasoline, jet fuel, diesel, asphalt, tar and lubricating oils used in transport, building and manufacturing. In 2020, world oil consumption was approximately 88.6 million barrels per day, or about 30.1 percent of the entire world’s primary energy use. Risks for oil abound, but its vast scale and versatility mean it will have a long tail of relevance for many decades yet.Read more: Vaishno Devi Yatra 2025–26: RFID card rules, smart lockers, helpline numbers and helicopter fare revisionVenezuela has the world’s largest oil reservesThe country topping the list of world reserves is Venezuela, with 303 billion barrels, whose proven oil reserves are the largest on earth, as per World Population Review. On paper, that puts Venezuela ahead of every other oil-producing country, an awesome long-term resource potential.But it’s one thing to have oil and another to be able to profit from it. Even with its huge reserves, Venezuela has suffered extended economic problems. It has everything to do with the kind of oil it produces and how easy it is for others to get. Most of Venezuela’s crude can be found offshore or deep underground and is incredibly thick, frequently categorized as extra-heavy oil. It takes sophisticated technology and heavy investment to extract and refine this kind of crude, making it a lot more costly than conventional oil.

To make matters worse, the United States has choked off much of Venezuela’s ability to sell crude and lure foreign investment through sanctions. The country has therefore never been able to properly monetize its huge resource base despite theoretically having the largest reserves in the world.Next up in the leader board after Venezuela is Saudi Arabia at just over 267 billion barrels of proven oil reserves. Though lower than Venezuela’s, Saudi Arabia’s oil sector is far more productive and lucrative.The key difference lies in geology and accessibility. Saudi Arabia’s oil reserves are largely on land and relatively close to the surface, allowing for easier and cheaper extraction. This significantly lowers production costs and enables large-scale output with existing infrastructure. As a result, Saudi Arabia has been able to build a highly efficient oil industry that consistently generates revenue and supports a large, diversified economy.Read more: 2026 travel list: 8 visa-free countries for Indian passport holdersAlthough Venezuela and Saudi Arabia have broadly comparable population sizes, Saudi Arabia’s economy is roughly twice as large. The ease of accessing and producing oil has played a decisive role in shaping this economic gap.Four countries dominate global oil reservesA disproportionately small number of nations hold the world’s oil reserves. Venezuela and Saudi Arabia alone control a significant chunk of the world’s proven reserves, with a few other large producers coming next. This level of focus affords these nations oversized influence in world energy markets, decades-long assumptions about supply and even geopolitical negotiations involving energy security.Yet reserve size alone does not guarantee economic success. Political stability, access to technology, infrastructure, and international trade relationships all determine whether oil reserves can be translated into national wealth.What happens next for Venezuela’s oil?Even with its current limitations, Venezuelan oil is strategically important. President Donald Trump has said that the United States will seize Venezuela’s oil reserves and that American companies will help rebuild its crumbling oil industry in the wake of a military operation to remove President Nicolás Maduro, whom critics accuse of mastering his country’s once-booming energy industry.It also makes a point that Venezuela’s oil remains at the heart of global geopolitical calculations. Whatever the change in political control, sanctions policy or access for foreign investment, Venezuela’s economic outlook and global oil supply balance could be radically different.