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The economy of Venezuela is based primarily on petroleum. Venezuela is the 25th largest producer of oil in the world and the 8th largest member of OPEC. Venezuela also manufactures and exports heavy industry products such as steel, aluminum, and cement. Other notable manufacturing includes electronics and automobiles as well as beverages and foodstuffs. Agriculture in Venezuela accounts for approximately 4.7% of GDP, 7.3% of the labor force and at least one-fourth of Venezuela's land area. Venezuela exports rice, corn, fish, tropical fruit, coffee, pork and beef. Venezuela has an estimated US$14.3 trillion worth of natural resources and is not self-sufficient in most areas of agriculture. Exports accounted for 16.7% of GDP and petroleum products accounted for about 95% of those exports.
The Organization of the Petroleum Exporting Countries is an organization enabling the co-operation of leading oil-producing and oil-dependent countries in order to collectively influence the global oil market and maximize profit. It was founded on 14 September 1960 in Baghdad by the first five members. The organization, which currently comprises 12 member countries, accounted for an estimated 30 percent of global oil production. A 2022 report further details that OPEC member countries were responsible for approximately 38 percent of it. Additionally, it is estimated that 79.5 percent of the world's proven oil reserves are located within OPEC nations, with the Middle East alone accounting for 67.2 percent of OPEC's total reserves.
Petroleum politics have been an increasingly important aspect of diplomacy since the rise of the petroleum industry in the Middle East in the early 20th century. As competition continues for a vital resource, the strategic calculations of major and minor countries alike place prominent emphasis on the pumping, refining, transport, sale and use of petroleum products.
Petróleos de Venezuela, S.A. is the Venezuelan state-owned oil and natural gas company. It has activities in exploration, production, refining and exporting oil as well as exploration and production of natural gas. Since its founding on January 1, 1976, with the nationalization of the Venezuelan oil industry, PDVSA has dominated the oil industry of Venezuela, the world's fifth largest oil exporter.
Alí Rodríguez Araque was a Venezuelan politician, lawyer, and diplomat. He was the leader of the political party Patria Para Todos and occupied various positions in the government of President Hugo Chávez, such as oil advisor, General Secretary of OPEC, President of Petróleos de Venezuela (PDVSA), Minister of External Relations and Ambassador to Cuba. He was appointed as Minister of Finance in June 2008. His last occupation was Ambassador of Venezuela in Cuba since 2014 until his death in 2018.
United States–Venezuela relations have traditionally been characterized by an important trade and investment relationship as well as cooperation in combating the production and transit of illegal drugs.
Since 2 February 1999, Venezuela has seen sweeping and radical shifts in social policy, moving away from the last government's officially embracing a free-market economy and liberalization reform principles and towards income redistribution and social welfare programs.
The Venezuelan general strike of 2002–2003 was an attempt by the Venezuelan opposition to President Hugo Chávez to summon a new presidential election. It took place from December 2002 to February 2003, when it faded. The government fired over 18,000 PDVSA employees and arrest warrants were issued for the presidents of the striking organizations. The main impact of the strike derived from the stoppage of the oil industry, in particular the state-run PDVSA, which provides a majority of Venezuelan export revenue. The strike was preceded by the 2002 Venezuelan coup d'état attempt in April 2002, and a one-day strike in October 2002.
Rilwanu Lukman was a Nigerian engineer who held several ministerial positions in the Nigerian Federal government before becoming Secretary General of OPEC from 1 January 1995 to 31 December 2000. He died on 21 July 2014. On 18 December 2008, Lukman was appointed Minister of Petroleum Resources by Nigerian president Umaru Yar'Adua, holding office until March 2010.
Venezuela has the world's largest proven oil reserves at an estimated 304 billion barrels as of 2020. The country was once one of the world's largest exporters of oil. Oil production peaked in the late 1990s and early 2000s.
The proven oil reserves in Saudi Arabia are reportedly the second largest in the world, estimated in 2017 to be 268 billion barrels, including 2.5 Gbbl in the Saudi–Kuwaiti neutral zone. This would correspond to more than 50 years of production at current rates. In the oil industry, an oil barrel is defined as 42 US gallons, which is about 159 litres, or 35 imperial gallons. The oil reserves are predominantly found in the Eastern Province. These reserves were apparently the largest in the world until Venezuela announced they had increased their proven reserves to 297 Gbbl in January 2011. The Saudi reserves are about one-fifth of the world's total conventional oil reserves. A large fraction of these reserves comes from a small number of very large oil fields, and past production amounts to 40% of the stated reserves. Other sources state that Saudi Arabia has about 297.7 billion barrels.
The proven oil reserves in Venezuela are recognized as the largest in the world, totaling 300 billion barrels (4.8×1010 m3) as of 1 January 2014. The 2019 edition of the BP Statistical Review of World Energy reports the total proved reserves of 303.3 billion barrels for Venezuela (slightly more than Saudi Arabia's 297.7 billion barrels).
From his election in 1998 until his death in March 2013, the administration of the late Venezuelan President Hugo Chávez proposed and enacted populist economic policies as part of his Bolivarian Revolution.
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The Bolivarian Republic of Venezuela was a founding member of the International Monetary Fund (IMF) in 1946.
Venezuela, officially the Bolivarian Republic of Venezuela, is a country located on the northern coast of South America. It is known for its large proven oil reserves. Before oil was discovered, Venezuelan production was primarily agriculture, such as coffee and cocoa. After the first commercial drilling for oil in 1917, oil production increased drastically due to the oil boom of the 1920s and was later furthered by World War II, as Venezuela supplied oil to the United States. From 1958 to 1989, democratic leaders attempted to use the large oil revenues to invest in other industry through various policies such as import substitution and other programs designed to diversify the Venezuelan economy away from a highly specialised export range. These attempts, for the most part, were unsuccessful as Venezuelan government revenues continued to be highly volatile due to the fluctuating price of oil, which was reflected especially throughout the 1980s due to the oil price crash. After struggling with fiscal debts due to a variety of trade protection measures and other policies, the President of 1989, President Andrés Pérez, worked with the International Monetary Fund in an attempt to rectify some of the issues plaguing the Venezuelan government. Perez was eventually unsuccessful due to political instability due to proposed austerity measures, and Hugo Chávez was later elected in 1998, after a defeat of both major political parties. The Chávez government begun enacting various socialist programs, such as free education and healthcare. These programs would continue up until Chávez's death in 2013. President Nicolás Maduro, Chávez's successor, was elected on 14 April 2013 and pledged to continue Chávez's work. However, due to hyperinflation, shortages of food and medicine and political instability, about 3 million Venezuelans have fled the country since 2015.
Emma Beatriz Brossard was an American professor of politics and government at the Louisiana State University at Baton Rouge and noted expert on the Venezuelan oil industry. She authored four monographs on the Venezuelan oil industry and its history. She was known for her criticisms of the Hugo Chavez administration and its policies in governing the Venezuelan oil company Petróleos de Venezuela, Sociedad Anónima (PDVSA).
References
- 1 2 3 "Viergutz, Alan J." Latin American Herald Tribune. Retrieved 15 August 2013.
- ↑ Larry Rohter (7 April 2000). "Venezuelan Calls Tune In OPEC's Price Tactics". The New York Times . Retrieved 15 August 2013.
- ↑ Greg Morsbach (10 June 2002). "Venezuela pins hopes on new oil chief". BBC . Retrieved 15 August 2013.
- ↑ Kristin McHugh (29 June 1999). "The Changing Landscape in Venezuela". Common Ground Radio. Retrieved 16 August 2013.
- ↑ "OIL POLITICS OF Bolivarian Revolution" . Retrieved 16 August 2013.
- ↑ Christina Hoag (1 May 2000). "Slipping on oil: Despite a US$4 billion windfall, Venezuela's oil industry is not necessarily booming. Just ask Centec Chairman Alan Viergutz". Latin CEO: Executive Strategies for the America. Retrieved 15 August 2013.
- ↑ Howard LaFranchi (28 December 1999). "The nation driving up oil prices". The Christian Science Monitor . Retrieved 15 August 2013.
- ↑ Alan J. Viergutz (2002). 1995-2001, Years of Upheaval in the Venezuelan Oil Industry. Grupo Centec. Retrieved 15 August 2013.
- ↑ "Venezuelan Oil Chief Resigns". Associated Press. 30 August 1999. Retrieved 16 August 2013.
- ↑ Marc Lifsher (12 April 2002). "Venezuela's President Chavez Is Ousted in Military Uprising". The Wall Street Journal . Retrieved 16 August 2013.
- ↑ Alejandro Barbajosa (1 June 2004). "Brent Crude Oil Jumps After Saudi Attack Adds to Supply Concern". Bloomberg News . Retrieved 16 August 2013.
- ↑ "Executives Profiles: Alan Viergutz" . Retrieved 20 August 2013.
- ↑ Bandell, Brian (9 June 2021). "Oil executive from Venezuela buys Key Biscayne mansion for $11M (Photos)". The Business Journals. Retrieved 9 June 2021.