This website uses cookies to ensure you have the best experience. Learn more

Crude Oil And Venezuela Essay

1515 words - 7 pages

Venezuela is a country that place at South America. Its official name is República Bolivariana de Venezuela. Its International Reserves: US$ 29,468 billion, GDP (Purchasing Power Parity): $381.3 billion of International dollars, GDP per capita – PPP: 12,920 International Dollars and its Real GDP growth: 5.6% (Source: World Bank, 2012.) Venezuela is a developing country today. And it deals with exportation of oil as a means of sustaining the country economically. Most of countries like Saudi Arabia (1th), Russia (2th), and United Arab Emirates (3th) etc. are dependent on their oil export economically. Oil export has significant effect on people life in these countries and also the oil export affects other sectors. Not in Russia, but in Saudi Arabia and Venezuela, other sectors development can only be provide by oil export. However, Venezuela is a bit different for the reason that the oil trade has not had a very positive effect in the sector of quality of life improvement. Venezuela is world 10th oil exporter, but it is still not doing well. So what is the reason behind that? This paper will also include Dutch disease in the oil industry of Venezuela and the changes in the industry. Political events affected Venezuela’s oil industry. This will be written, too.
In the period of 1920-1970, the country was a global oil exporter. Its position is 10 these days, because there were wars in the middle-east. The wars in the Afghanistan and Iraq make oil reserves to reduce. The current leader is Nicolas Maduro who has influenced by Hugo Chavez, had very big impact on Venezuela. In the earlier of Hugo Chavez’s management oil prices increased rapidly. And in these days, the US had to buy oil from Venezuela because the US needed oil to produce energy.
There is four parts of oil industry in the Venezuela, the discovery and initial production of oil (1912-1943), Venezuela’s assertion of control over the oil industry (1943-1974), the oil boom and nationalization of the oil industry (1974-1998), and the government’s attempt to regain control over an increasingly independent oil industry (1999-2003). (Wilpert, 2003)
Discovery and primary production of oil (1912-1943): In the pre-Colombian times, oil leaked to the Venezuela and it was found. It was drilled in the 1912. In the beginning, foundation of the petroleum made Venezuela became worlds 2nd producer of oil. The name of the firm that first producer in the Venezuela is Rockefeller’s Standard Oil and Royal Dutch Shell (RSORDS.) From 1920 to 1935, the share of the oil, in the total export, increased 1.9% to 91.2%.
Affirmation of power over the industry by Venezuela in 1943-1974: in the 1943, the government confirmed an oil policy. The policy is compatible with Hydrocarbons Act. Before this policy, oil incomes depend on customs and concessions. After the policy, oil income became to depend on taxes income from mining. In these days, oil overproduced. After the middle-east countries and Venezuela forced other oil...

Find Another Essay On Crude Oil and Venezuela

Rising Gas Prices in the United States

1125 words - 5 pages and crude oil from Canada 23.3%, Venezuela 10.7%, Saudi Arabia 10.4%, Mexico 9.2%, and Nigeria 8.3%. (e. I. Administration) In addition, approximately 77 other countries import to the United States. (e. I. Administration) Worldwide, there are many factors contributing to the increase in cost per barrel. Most recently, Libyan rebels, inspired by the success of their Tunisian and Egyptian neighbors, are uprising against their leader, Moammar

The Worlds Biggest Legit Cartel: Crude Oil

876 words - 4 pages buying that drive the price of gasoline and other related goods skyrocketing. Eventually, traders will sell that surplus and take some profit, recovering from losses or pocketing the cash to use for another day.OPEC is a collation of the major exporters of crude oil in the Middle East, Africa, Asia and South America. This includes Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, UAE, and Venezuela. OPEC currently controls

Heavy oil transportation: can it be made easier by magnetism?

1621 words - 6 pages Introduction Transportation of heavy crude represents a competitive situation, as it is energy exhaustive and capital intensive. Due to low API gravity (20° to 10°) and high viscosity (200 to 10,000 CP), the flow of oil through pipelines is very difficult. According to Chevron – Phillips, the heaviness of crude oil is due to large proportion of high molecular weight non paraffinic compounds and less percentage of paraffin. Geological origin of

How Oil Prices are Established

1377 words - 6 pages other foreign sources providing approximately 5MM barrels per day. Existing global resources that we depend upon for newer sources of crude oil are unfortunately from countries with unstable governments or internal problems. In Venezuela, rhetoric from the now ruling government is increasingly hostile towards the USA and the country has taken strides to remove foreign oil companies from a leadership role as they nationalize their own oil industry

A Crude Awakening to a Ceaseless Dependency in Oil

830 words - 4 pages Crude oil: Seeps into the minds of investors whilst increasingly fueling the deadly dependency within them. Crude oil: Cheap in cost, yet costly in terms of wars fought, lives lost, and societal social and economic dislocations created. Crude oil: the penned “Black Gold” that we seek to posses. What once started out as a newly conventional commodity has now become a diminishing support system for all. It “creates the illusion of a completely

Venezuela's Center of Gravity Analysis

1744 words - 7 pages critical requirement (CR) and critical vulnerability (CV) for the political system as well as other PMESII categories not directly discussed in this paper. Therefore, the oil industry within Venezuela’s economic system is the primary COG and possible means of influence are critical to consider while progressing toward achievement of U.S. strategic objectives with Venezuela, namely, regional stability. Analysis of Venezuela’s political history

Oil Prices and Economic Growth

1194 words - 5 pages From the middle of twentieth century, due to exceptional importance of the crude oil in the supply of the world's energy demands, it has become one of the major indicators of economic activities of the world. Even after the appearance of alternate forms of energy like solar power, water and wind, the importance of crude oil as the main source of energy still cannot be denied. This sharp increase in the world oil prices and the volatile

The Importance of Crude Oil

1194 words - 5 pages From the middle of twentieth century, due to exceptional importance of the crude oil in the supply of the world's energy demands, it has become one of the major indicators of economic activities of the world. Even after the appearance of alternate forms of energy like solar power, water and wind, the importance of crude oil as the main source of energy still cannot be denied. This sharp increase in the world oil prices and the volatile

Oil Prices and Economic Growth

1194 words - 5 pages From the middle of twentieth century, due to exceptional importance of the crude oil in the supply of the world's energy demands, it has become one of the major indicators of economic activities of the world. Even after the appearance of alternate forms of energy like solar power, water and wind, the importance of crude oil as the main source of energy still cannot be denied. This sharp increase in the world oil prices and the volatile

Crude Oil Market Structure changing scenario

9672 words - 39 pages ; Russia and Nigeria mainly use spot markets; and Norway, Mexico and Venezuela actually split their sales in line with the global average shares for the different types of selling price (Energy Intelligence, 2004). Spot deals, on the other hand, are defined as immediate deliveries of crude oil outside of any continuing supply commitment. Although the spot market accounts for less than 50% of physical oil sales, spot prices are the primary determinant

Demand and Supply of Oil

844 words - 3 pages that is accepted by both consumers and suppliers, and in Oil industry such equilibrium is always sought for many reasons such as to prevent Oil product inventory and refining plants in consumer sides and for more crude Oil exploration and development in producer side. Therefore OPEC always tries to keep demand and supply in balance.ConclusionsOPEC always have meeting every 3 months to decide whither to increase or decrease the supply of Oil and

Similar Essays

Crude Oil Research On Products Of Crude Oil And Waste Processes

2229 words - 9 pages CRUDE OILCrude oil is a flammable liquid found in subterranean deposits and best known for its use as a fuel and as a raw material for chemical products.It was originally created from the remains of animals and plants that lived in a water environment. Millions of years ago, much of the earth was covered by seas- more than it is today. Countless millions of tiny creatures and plants lived in these seas. When they died they sank to the bottom

The Process Of Decomposition Of Mixtures Into Compounds And Elements: Grey Water And Crude Oil

1151 words - 5 pages rinse water used to clean the pipes can be minimised by blowing out the pipes with pressure to insure the pipes are as clean as they can be before rinsing with water. If less water is used to clean the pipes less Hydrochloric acid will be used resulting in fewer residues.Crude oil is a naturally occurring mixture of hydrocarbons formed over millions of years from decaying animal and aquatic plant matter. The refinery of crude oil in our society

Venezuela Research Paper

893 words - 4 pages ’s, Venezuela was a relatively poor agricultural society plagued by political instability. During the 1900’s, however, wealth from rich oil deposits rapidly transformed the nation into a modern democratic society with a notable degree of political stability.” (Tenenbaum, 179) This source also explains how Venezuela’s society and economy ameliorated with the money gained from all the great natural resources and with the money earned, the country

Five Significant Geological Features In Venezuela

1089 words - 5 pages Venezuela and the Caribbean Sea. In 1962, this thirty-four mile strait was fully connected when the General Rafael Urdaneta Bridge was built. Because of this, the bridge is now one of the longest bridges in the world, at 8.7 kilometers or 5.4 miles long. Each day it is crossed over by as many as 37,000 vehicles (World). The basin surrounding Lake Maracaibo is one of the major oil-producing areas of the world. Venezuelan crude oil is shipped through