By early 2026, the differences in global oil extraction costs are enormous, with Venezuela being the most typical case.

Let's first look at the light crude oil around Lake Maracaibo, with extraction costs of about $23 per barrel. But the real main player is the Orinoco heavy oil belt—this region accounts for 74% of Venezuela's total oil reserves. The official figures of $16.5 to $23.5 per barrel are not too far off, but in actual operation, due to aging facilities and low management efficiency, costs soar to $23 to $30. More importantly, additional costs for dilution, long-distance transportation, refining, and other full-chain processes push the total to $50 to $60 per barrel, with some projects even exceeding $70.

Compared to other oil-producing countries, it's quite shocking: Saudi light crude costs only $3 to $5 per barrel, and U.S. shale oil is around $40 to $55. Venezuela's heavy oil prices are clearly high on the global cost curve, making profit margins extremely fragile once oil prices fluctuate. For energy-dependent economies, the implications are self-evident.