Venezuela has begun shutting down oil wells in the Orinoco Belt, which houses the world's largest oil reserves, in response to a blockade imposed by the Trump administration aimed at financially pressuring the regime. According to Bloomberg, the state oil company has started this process as of December 28, coinciding with full storage capacities and rising crude inventory.

The company plans to cut production in the Orinoco Belt by at least 25%, reducing it to 500,000 barrels per day, which represents a 15% decrease from Venezuela's total production of 1.1 million barrels per day. This decision comes as President Nicolás Maduro seeks to maintain oil exports, vital to Venezuela's economy, amid U.S. maritime sanctions.

Operational challenges and high costs of restarting wells have made this shutdown a last resort. The plans include closing wells in Junín, which contain the heaviest oil, before moving on to others like Ayacucho and Carabobo, which produce lighter oil. In early December, President Biden authorized the military blockade to combat drug cartels in the country.