Big Oil and the Destruction of Venezuela’s Economy

The following is a chart of crude oil exports by country. Looking on the chart we can see that the United States was able to increase its crude oil revenue by 328% between the years 2014 and 2017. Venezuela has experienced a huge 55.5% decline in oil revenue during a five year period. Even though the chart indicates the “United States” had a 328% increase in revenue between 2104 and 2017, it wasn’t actually the United States since the American people have not benefitted from these oil revenues, not unless “cheaper” gasoline could be considered a “benefit”? The big America oil cartels like Exxon Mobil, Chevron and ConocoPhillips have benefitted the most because there are no restrictions on oil pumped from wells in America from being sold to foreign countries like China.

Of 15 countries reflecting oil exports displayed on a chart from this same source, Venezuela had the largest drop in oil exports of 69.2% in 2017. PVDSA is the Venezuelan state-run petroleum company. The reason why PVDSA is state-run is because Venezuela wants energy independence and they do not want private oil companies “putting their bottom line ahead of the well being of their people”. Even though “energy independence” is talked about a lot in the US, the reality is Americans do not have energy independence considering American oil cartels reflect a 328% increase in oil revenue from exporting American oil to foreign countries. American oil cartels are not concerned in the least with the “well being of their citizens” unlike in Venezuela with the state-owned PDVSA.

Mexico’s PEMEX oil company has control of how much oil is exported from Mexico. PEMEX’s job is also to make sure that oil leaving Mexico benefits the Mexican people. Saudi Arabia’s Aramco, Brazil’s Petrobas and almost every single oil producing country has a company run by the state that ensures that the oil leaving their country isn’t to profit a few people. During the 1970s, the US had laws preventing oil companies from exporting oil for profit with limited exceptions for Mexico and Canada. These laws were in place up until around 2015 when the ban on profiting from oil exports was lifted. What this mens is that there will be no American energy independence because the mechanism to ensure that independence has been removed with American oil sold on the world markets for the highest price.


Source: World’s Top Exports

Crude Oil Exports by Country

by Daniel Workman • October 6, 2018

Amounting to 4.3% of the worldwide value of all export products, global crude oil shipments totaled US$841.1 billion for 2017. That dollar figure reflects a -46.5% decline since 2013 but a 30.4% increase from 2016 to 2017.

Crude oil is the world’s number 2 export product outpaced only by the value of exported cars–at least in 2017 when oil prices continue to be relatively lower and while international automobile sales were strong.

Middle Eastern countries accounted for the highest dollar value worth of crude oil exports during 2017 with shipments valued at $356.3 billion or 42.4% of globally exported crude oil. At the continent level, almost half comes from countries in Asia (49.4%). Europe supplies 18% of the overall total, followed by Africa at 13.4% and North America at 11.4%.

Smaller percentages originate from Latin America excluding Mexico but including the Caribbean (6.9%), and Oceania led by Australia (0.6%).

The 4-digit Harmonized Tariff System code prefix for crude oil is 2709.

Crude Oil Exports by Country

Below are the 15 countries that exported the highest dollar value worth of crude oil during 2017:

1. Saudi Arabia: US$133.6 billion (15.9% of total crude oil exports)
2. Russia: $93.3 billion (11.1%)
3. Iraq: $61.5 billion (7.3%)
4. Canada: $54 billion (6.4%)
5. United Arab Emirates: $49.3 billion (5.9%)
6. Iran: $40.1 billion (4.8%)
7. Kuwait: $38.2 billion (4.5%)
8. Nigeria: $33 billion (3.9%)
9. Angola: $30.5 billion (3.6%)
10. Kazakhstan: $26.6 billion (3.2%)
11. Norway: $25.9 billion (3.1%)
12. Venezuela: $23.1 billion (2.7%)
13. United States: $21.8 billion (2.6%)
14. Mexico: $19.9 billion (2.4%)
15. United Kingdom: $19 billion (2.3%)

The listed 15 countries accounted for 79.6% of all crude oil exports in 2017 (by value).

Only two of the above top 15 exporters increased the value of their crude oil shipments from 2013 to 2017, namely the United States with its 328% improvement in revenue and Iraq via a modest 0.6% gain.

The 13 other top sources of crude oil posted declines over the 5-year period ranging from -69.2% for Venezuela and -55.5% for Nigeria down to -32% for Canada and -14.5% for Iran.

Other notable declines include -54.5% for Saudi Arabia, -53.6% for Kazakhstan, -53.4% for Angola, -53.3% for Mexico, -52.1% for Kuwait, -48% for Norway and -46.3% for Russia.


Private American multi nationals operating in Venezuela where completely unregulated contracting with Venezuelans in highly questionable contracts not delineating between revenue and profit. The American people have been able to enjoy the benefits of cheap gas because of the petrodollar. If any country wants to buy oil, it first needs to purchase dollars in order to purchase petroleum. No one country can set the price of oil. Venezuela does not have this mechanism where it is required to purchase dollars in order to buy petroleum. This is how the US was able to manipulate the price of oil to destroy the economy of Venezuela.

Venezuelans have been forced off farmland into the oil industry. And since much of the productive farm land has been bought up by these same large oil cartels and multi nationals operating in Venezuela, they refuse to allow Venezuelans to produce their own food. Under President Nicolás Maduro, laws were passed that if land was available to grow food, Venezuelans living in that area could “expropriate” the land to grow their own food.

This has drawn the anger of American oil cartels and multi nationals that do not want to allow the people of Venezuela to become prosperous and energy independent using their oil for their own benefit. This of course means that Venezuela has been forced to import much of its food. The events continue to escalate in the eyes of Americans concerning events in Venezuela when the cynical media in the US reports that Venezuelans are “stealing land” when what they are trying to do is grow their own food. In the eyes of Americans who have been fed a constant stream of US media deception they think “socialism is destroying Venezuela.”


Source: Reuters

Cash-strapped Venezuela sets new wages for oil workers as protests simmer

by Alexandra Ulmer • October 10, 2018

CARACAS, Oct 10 (Reuters) – Venezuela on Wednesday increased wages for workers at state energy company PDVSA after employees staged small protests to decry meager salaries amid the OPEC nation’s economic meltdown.

Socialist President Nicolas Maduro in August unexpectedly ordered a 60-fold increase in the minimum wage to compensate for around 500,000 percent annual inflation and a 96 percent devaluation of the bolivar currency.

But workers at PDVSA said their wages had not been bumped up accordingly, and that the cash-starved company had instead been paying one-off bonuses.

Vice-President Delcy Rodriguez, flanked by pro-government union leaders, on Wednesday announced new wages but did not provide specific figures, instead praising PDVSA’s attitude in the face of U.S. sanctions.

“To the PDVSA workers, our gratitude, because they have been a fundamental pillar in the defense of the oil industry against attacks from imperialist centers of power,” said Rodriguez, a key Maduro ally.

Please go to Reuters to read the entire article.





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