Venezuela is one of the world’s largest exporters of crude oil and the largest in the Western Hemisphere. In 2007, the country was the seventh-largest net oil exporter in the world. The oil sector is of central importance to the Venezuelan economy: it accounts for more than three-quarters of total Venezuelan export revenues, about half of total government revenues, and around one-third of total gross domestic product (GDP). In addition, as a founding member of the Organization of the Petroleum Exporting Countries (OPEC), Venezuela is an important player in the global oil market.

In 2006, Venezuela consumed 3.2 quadrillion Btus of total energy. Natural gas and oil represent the bulk of total energy consumption in Venezuela. After reaching 46 percent of total energy consumption in 1998, the share of natural gas in Venezuela’s oil mix has fallen to 34 percent. During the same period, the share of oil consumption has risen from 32 percent to 40 percent. Hydroelectricity represents the remainder of the country’s energy mix, and Venezuela is well-endowed with hydroelectric potential.