Venezuela was one of the founding members of      the Organisation of Petroleum Exporting  Countries (OPEC) and has proven...
Current reserves are expected to last nearly 80 years Venezuelahas the ninth largest gas reserves in the world but gas inf...
PDVSAs own website states its intention to "put the oil resources tothe service and well being of the country; to build a ...
In fact, Venezuela is one of the largest exporters of crude oil to theUSA and supplies on average 15% of its requirements ...
Oil prices increased by nearly $30 a day between 2002 and 2005and the value of global exports doubled to nearly $800 billi...
Gold mining is particularly controversial in Venezuela and inSeptember 2005 social hundreds of small scale miners blockedr...
Royalty payments and production taxes also apply Mercosur, theSouth American trading block, has agreed to admit Venezuela ...
The current government of Venezuela is attempting to integrate theLatin American energy markets, and ultimately the region...
5 million in 2005 The value of trade exports more than doubledbetween 1996 and 2005 as a consequence of oil price rises an...
Despite the importance of trade between Venezuela and the USArelations between the two countries are fraught The Venezuela...
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Venezuela-Was-One-Of-The-Founding-Members-Of-The-O140

  1. 1. Venezuela was one of the founding members of the Organisation of Petroleum Exporting Countries (OPEC) and has proven oil reservesestimated to be around 76 billion barrels in 2005, representing 6.5% of known world reserves. Oilproduction in Venezuela commenced in 1878 but commercial production did not begin until 1914. Today, oil dominates the Venezuelan economyand oil production currently stands at around 3.3million barrels a day or 3.7% of world production.silver stocks
  2. 2. Current reserves are expected to last nearly 80 years Venezuelahas the ninth largest gas reserves in the world but gas infrastructureis undeveloped Current reserves are estimated at 14 trillion squaremetres but the petroleum industry consumes 70% of domestic gasproduction Venezuela also produces Orimulsion from the Orinocobelt which consists of an emulsion of water and oil The nameOrimulsion is trade mark protected The current Venezuelanadministration is striving to achieve full national sovereignty over itsnatural energy reserves
  3. 3. PDVSAs own website states its intention to "put the oil resources tothe service and well being of the country; to build a new economicand social model, ending inequalities that have been present inVenezuelan society over the last decades PDVSA stimulates theendogenous development of communities, realising a fair distributionof the NationÂ’s oil wealth " On January 1 2006 PDVSA took back32 oil fields silver stocks from private companies including Total, Eni,Chevron, Royal Dutch Shell and Repsol after declaring thatpreviously signed operating agreements should have been set at atax rate of 50% not 34% British Petroleum (BP) was also handed abill for back taxes for $61 4 million in March 2006 Venezuelaexported US$38,971 million in 2005 primarily to the USA, Europeand Latin America
  4. 4. In fact, Venezuela is one of the largest exporters of crude oil to theUSA and supplies on average 15% of its requirements Of thisaround 1 5 million barrels a day of oil and by products are exportedunder long term agreements The current administration hasattracted criticism and praise for using oil profits to fund socialprogrammes both at home and abroad - Citgo (the retain and refiningarm of PDVSA in the USA) has even started selling subsidisedheating oil to deprived communities in the USA Venezuela hasadhered strictly to its OPEC production quotas since the inaugurationof Hugo Chavez The war in Iraq had boosted oil prices andeffectively transferred billions of US$ from oil importing countriessuch as the USA to exporting countries such as Venezuela
  5. 5. Oil prices increased by nearly $30 a day between 2002 and 2005and the value of global exports doubled to nearly $800 billion in 2005 Whilst the current oil price rises are not as significant as those of the1970s the extra profits generated for oil producing countries isalready affecting domestic and global finances Venezuelas mineraldeposits include iron, bauxite, coal, gold, phosphate, limestone andnickel Gold mining stated in Venezuela in the 19th century and thecountry holds 12% of known world gold reserves in 2004 goldproduction stood at 9690 kilograms Gold is mined by privatecompanies under concession and small scale artisan miners Thelargest private gold producing company in Venezuela is Hecla MiningCompany which operates the La Camorra mine in the state of Bolivar
  6. 6. Gold mining is particularly controversial in Venezuela and inSeptember 2005 social hundreds of small scale miners blockedroads and held demonstrations in protest against the governmentdecision to grant gold mining concessions to Crystallex InternationalCorporation, a Canadian mining company The state owned miningcompany is Minerven Mining is banned in some areas in order toprotect indigenous communities and the environment but illegalmining continues The government has promised to monitor andreview this situation Indigenous communities in states ofAnzoategun, Monagas and Sucre have recently been granted somecommunal land rights to farm and fish but this does not includeownership of minerals in the ground Any mining activities must beauthorised by the government and minerals reserves, likehydrocarbons, belong to the state
  7. 7. Royalty payments and production taxes also apply Mercosur, theSouth American trading block, has agreed to admit Venezuela as amember Other members include Brazil, Argentina, Paraguay andUruguay The aim of the block is to facilitate regional economicintegration and cooperation, and requires commitment to democraticstandards However it will be some time before Venezuela can be afully participating member because it is already a member of theAndean Community of Nations with a different tariff regimeVenezuela indicated its intention to withdraw from the AndeanCommunity, which is more sympathetic to the US than Mercosur, inApril 2006 as a result of trade deals between Peru, Columbia and theUS
  8. 8. The current government of Venezuela is attempting to integrate theLatin American energy markets, and ultimately the regionaleconomy, through energy ventures and agreements with othercountries Chavez signed an agreement with the President of Cuba,Fidel Castro, in 2000 to export cheap oil to Cuba Venezuela is alsoa signatory to the San Jose Accord with Mexico to supply oil to 11countries in Central America and the Caribbean at preferential prices In return Venezuela receives subsidised agriculture and industrialproducts, and medical services Hugo Chavez has invested in otherforeign energy ventures including a joint venture with Cuba todevelop the Cienfuegos refinery in Cuba and energy infrastructureprojects to construct new gas pipelines in South America Venezuelaenjoys a large trade surplus as a result of its oil exports and its tradebalance stood at US$31
  9. 9. 5 million in 2005 The value of trade exports more than doubledbetween 1996 and 2005 as a consequence of oil price rises and agrowth in other export goods Venezuelan exports were worth US$555 million in 2005 and oil exports accounted for US$39 million of thisVenezuelas major trading partners are the US, Colombia, Brazil,Mexico, Germany, the Netherlands, Japan, Ecuador and China TheUS was the destination country for 55% of Venezuelan exports whilstVenezuela imported 33% of its imports from the US
  10. 10. Despite the importance of trade between Venezuela and the USArelations between the two countries are fraught The Venezuelangovernment has claimed that the US Central Intelligence Agency(CIA) was involved in the 2002 coup In February 2005 the foreignminister of Venezuela asked the Organisation of American States(OAS) to investigate an alleged attempt to assassinate the president,and cited a number of anti Chavez statements made by US officialsUS officials have denied these allegations whilst Hugo Chavez hasthreatened to cut off oil exports The US has supported Colombiaduring recent conflicts between Venezuela and ColombiaCopyright: Rowena Slope (2006)
  11. 11. silver stocks

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