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OIL IN VENEZUELA

Perhaps the most important thing to know about Venezuela is that it is an oil exporting country, the fifth largest in the world, with the largest reserves of conventional oil (light and heavy crude) in the western hemisphere and the largest reserves of non-conventional oil (extra-heavy crude) in the world. This fact is of immense importance to understanding Venezuela because it has shaped practically every aspect of the country, its history, its economy, its politics, and its culture. In what follows I will provide a brief history of Venezuela’s oil industry. Next, I discuss how the oil industry has shaped the economy, polity, and culture. Then, I examine the criticisms leveled against the oil industry and how the Chávez government has proposed to address these. Finally, I present what the opposition has done to prevent the reform of the oil industry and how the government has reacted towards this opposition.

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