During the late President Hugo Chavez of Venezuela's tenure, domestic oil output plunged from 3.5 million barrels per day to 2.34 bpd in the last month. Venezuelan oil output may only jump to 2.8 million bpd in the next few years, according to projections.

According to Energy & Capital, "Venezuela is the largest producer of oil in South America because of the Orinoco belt region on the eastern side. But this region lacks the necessary investment to increase the country's oil produce."

The Orinoco belt holds more than enough oil reserves; however the late Chavez divested oil funds into his family’s pockets and died a billionaire.

As reported by Energy & Capital, "foreign investment has not exactly been smooth-sailing since Chavez nationalized the oil fields in 2007. Outside oil companies were encouraged to continue drilling, but the PDVSA would take 60% of the profits, according to CNN."

Oil companies, including ConocoPhillips and ExxonMobil, pulled out of contract agreements with the Venezuelan government.

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