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From prosperity to decay: Venezuela's oil legacy fades
Miraflores, a once-thriving suburb on the eastern shore of Lake Maracaibo, now stands as a stark symbol of Venezuela's economic collapse. The neighborhood, built for oil executives during the industry's golden age, features abandoned homes with shattered windows and stripped wiring, a far cry from its former affluence.
Lake Maracaibo: A shadow of its former self
The region, home to the world's largest proven oil reserves-estimated at 303 billion barrels-was once a powerhouse of global crude production. In the 1970s, Venezuela pumped 3.5 million barrels daily, accounting for over 7% of global output. By late 2025, production had plummeted to 860,000 barrels per day, less than 1% of the world's supply.
Rusting oil pumps and rigs dot the landscape, many idle for years. While a handful of operational wells remain, most are neglected, their decay mirroring the broader decline of the nation's energy sector.
Economic collapse leaves residents struggling
Gladysmila Gil, 82, moved to Miraflores in 1968 when her husband, an oil worker, was given a home. "Back then, we had hospitals, reliable trash collection, and no power outages," she recalls. Today, rubbish piles up, and blackouts are a daily occurrence despite the region's vast oil wealth.
José Gregorio Martínez, 64, a retired teacher, relies on remittances from relatives abroad. His monthly state pension of $2.80 is insufficient for basic needs. "There are no young people left here," he says, fighting back tears. "They've all gone."
Venezuela's GDP has shrunk by over 70% since Nicolás Maduro became president in 2013, deepening poverty and inequality.
US intervention and hopes for revival
In early January, the US military detained Maduro in Caracas, transporting him to New York to face narco-terrorism charges, which he denies. President Donald Trump announced plans to "run" Venezuela and control its oil sales, aiming to attract $100 billion in US investment to rebuild the energy sector.
Maduro loyalist Delcy Rodríguez, now leading Venezuela's armed forces, has cooperated with the Trump administration to reform laws allowing foreign firms to operate oilfields under new contracts. The Venezuelan parliament, dominated by Maduro's allies, approved the shift on Thursday.
Many in Maracaibo, like fisherman Carlos Rodríguez, 28, hope US investment will bring jobs and restore prosperity. "Our children shouldn't have to rely on fishing," he says. "They deserve a future."
Environmental devastation and cautious optimism
Lake Maracaibo's waters, once pristine, are now polluted with oil and cyanobacteria. Fishermen report dwindling catches, with some days yielding no fish at all. "The lake is getting worse every day-green, black, oily," Rodríguez says.
While some, like José Luzardo, a Maduro supporter, welcome foreign investment, they insist on sovereignty. "The oil belongs to Venezuela," he says. "We don't want to be a colony."
Others, particularly government opponents, avoid discussing politics for fear of reprisals. Yet both sides agree on the need for investment to revive the industry.
Challenges ahead for oil sector recovery
Juan Romero, a ruling-party lawmaker from Zulia state, highlights the potential: "Lake Maracaibo has 13,000 recoverable wells and 26 billion barrels of reserves." He believes lifting US sanctions will end the sector's "economic strangulation" and attract foreign capital.
However, analysts warn that restoring Venezuela's oil output to former levels could take a decade and hundreds of billions of dollars. ExxonMobil CEO Darren Woods called the country "uninvestable" in its current state, citing past asset seizures and the need for stronger legal protections.
Despite the challenges, hope persists. José Rodas, 93, a retired oil worker, reminisces about the industry's heyday. "Life was easier then," he says, pointing to his 1970s Dodge Dart, a relic of the oil boom. "We had comforts-subsidized food, home maintenance. Now, everything is harder."
