Fred Ehrsam, co-founder and board member of Coinbase, has signed a production-sharing contract with PDVSA, Venezuela's state oil producer, through his investment vehicle Primavera, according to reporting by The Wall Street Journal on September 10.
Ehrsam has been seeking control of at least three oil fields in the Orinoco Belt, which contains the world's largest concentration of extra-heavy crude. The eventual scope of Primavera's operations remains unclear, though the company has now secured production-sharing contracts with PDVSA.
Venezuela's Oil Opportunity
Venezuela holds the world's largest proven crude oil reserves at approximately 303 billion barrels as of 2023, according to the U.S. Energy Information Administration. However, production lagged significantly at 783,000 barrels per day in 2023, rising to 1.12 million barrels per day by July 2026, according to International Energy Agency estimates.
Other international players are also moving into Venezuelan oil. Chevron plans to invest more than $7 billion over five years and more than double its Venezuelan production to around 600,000 barrels per day. North American Blue Energy Partners received rights to 17 fields comprising over 65 billion barrels of reserves, with the U.S. government acquiring a 35% stake in the company.
Timeline and Execution Challenges
According to Rystad Energy, Venezuelan crude production will likely grow by about 17 percent, or 194,000 barrels per day, from late 2025 to late 2028, mostly from existing fields. However, significant new production from the Orinoco Belt is not expected until around 2035, according to Rystad's longer-term outlook.
Execution remains the primary constraint rather than reserves. Commerzbank has raised questions about the legality of oil deals and cautioned that expectations for substantial additional Venezuelan oil reaching markets within months are likely to be disappointed.
Potential Crypto Market Implications
Increased Venezuelan oil production could indirectly affect cryptocurrency markets through its impact on inflation and monetary policy. According to Federal Reserve research, a 10 percent increase in oil prices can raise the Consumer Price Index by nearly 0.4 percent.
Additional Venezuelan oil supply could reduce oil-driven inflation and ease pressures on interest rates and other risk assets. However, new supply disruptions would produce the opposite effect.
Venezuela already maintains significant ties to cryptocurrency markets. Chainalysis estimated $44.6 billion in Venezuelan crypto transaction flows in 2025, documenting cryptocurrency's role both as a household financial tool and in sanctions-linked oil trade.
