Venezuela: Oil, Gold and Foreign Affairs



Venezuela was one of the founding members of the Organisation of Petroleum Exporting Countries (OPEC) and has proven oil reserves estimated to be around 76 billion barrels in 2005, representing 6.5% of known world reserves. Oil production in Venezuela commenced in 1878 but commercial production did not begin until 1914. Today, oil dominates the Venezuelan economy and oil production currently stands at around 3.3 million barrels a day or 3.7% of world production.

Current reserves are expected to last nearly 80 years. Venezuela has the ninth largest gas reserves in the world but gas infrastructure is undeveloped. Current reserves are estimated at 14 trillion square metres but the petroleum industry consumes 70% of domestic gas production. Venezuela also produces Orimulsion from the Orinoco belt which consists of an emulsion of water and oil. The name Orimulsion is trade mark protected.

The current Venezuelan administration is striving to achieve full national sovereignty over its natural energy reserves. PDVSA's own website states its intention to "put the oil resources to the service and well being of the country; to build a new economic and social model, ending inequalities that have been present in Venezuelan society over the last decades. PDVSA stimulates the endogenous development of communities, realising a fair distribution of the Nation