Chifipa Mhango, Chief Economist at Don Consultancy Group, notes that despite Venezuela's vast petroleum resources, the country's oil industry, which was once the cornerstone of state finances, foreign policy, and social spending it has been severely weakened over the years by politicisation, mismanagement, and institutional decay.

Mhango explains that Venezuela has become a striking example of how political decisions can turn immense natural wealth into economic hardship.

He adds that any reform of the country's oil sector must be accompanied by broader political and institutional changes.