 "Venezuela, which nationalised its oil reserves in 1976,. has witnessed its oil production decline precipitously over the past decade.")
Venezuela has the world’s largest oil reserves.
According to the Organization of Petroleum Exporting Countries (OPEC), Venezuela has over 300 billion barrels of oil. The country, which nationalised its oil reserves in 1976, has witnessed its oil production decline precipitously over the past decade.
Venezuela’s oil industry was holding up well till the mid-2010s. In fact, Caracas at one time comprised around 12 per cent of India’s oil imports. However, under Hugo Chávez, the country’s oil production plummeted due to mismanagement in its state-owned Petróleos de Venezuela, S.A. (PDVSA) and international sanctions.
Then, Trump came to power in 2017, and things got worse. The US president further tightened sanctions on Venezuela, which took another chunk out of the industry.
Let’s take a closer look at the decline of Venezuela’s oil industry.