Case Study: Venezuelan Oil

History of Venezuela Oil

In 1908, Juan Vicente Gómez because president of Venezuela and granted several concessions for the exploration of oil to his friends and family members, encouraging them to sell out to foreign oil companies. On April 15, 1914, the first Venezuelan oilfield (Zumaque-I or MG-I) was completed. From 1914 to 1917 more oilfields were discovered across Venezuela, including the Bolivar Coastal Field. The Bolivar Coastal Field is the largest oil field in South America, containing 6,000 to 7,000 wells that stretch 35 miles along the north-east coast of Lake Maracaibo, Venezuela. In 1922, the Barroso No.2 well in Cabimas marked the beginning of Venezuela as a major producer of oil. Today Venezuela is the fifth largest oil exporting country in the world with the second largest reserves of heavy crude oil (after Canada).

detail of area of Venezuela

(Market Oracle)

Relations Between the U.S. and Venezuela

Tensions between the U.S. and Venezuela rose after the election of socialist President Hugo Chἁvez in 1999. After accusing a U.S. ambassador of conspiring with anti-government groups, Venezuela broke off diplomatic relations with the U.S. on September 2008 and remained that way until relations were reestablished under President Barack Obama in June 2009. Despite Venezuela's stated desire for improved relations with the U.S. and its appeals for mutual respect, tensions between both nations are still high as a result of the U.S.'s foreign policy. In February 2014, Venezuelan Government ordered three American diplomats to leave the country on charges of promoting violence. Despite political tensions, the U.S. works to remain in talks with Venezuela to have access to their oil exports.

Obama and Chavez

(Voltaire Net)


Oneasha Poole

Last Updated: August 01, 2014