After the latest political shock in Venezuela, speculation has surged over the prospects of a recovery for the country’s oil industry. On paper, Venezuela still holds the world’s largest proven oil reserves. In reality, production remains a fraction of what it once was. How quickly Venezuela’s oil production ramps up will depend in part on what happens with sanctions. But Venezuela’s collapse did not begin with sanctions, nor can sanctions relief alone undo the damage. However, that could have a significant short-term effect.…