The History of Oil Production in Venezuela

The history of oil production in Venezuela goes back to the 19th century when Venezuela's first oil company was founded. However, for the sake of brevity, this analysis focuses only on development that occurred after 1960. Analyzing the history of oil production shows that the government continues to play an important role in this field, leading to several major recessions. Prior to 1960, oil production in Venezuela was completed mainly by Royal Dutch Shell and Venezuelan oil entered the world market as leader of the organization.

When oil was discovered during the strike in Maracaibo in 1922, Venezuelan dictator Juan Vicente Gómez admitted American oil company the establishment of Venezuelan oil law. However, the history of petroleum occurred when the New Jersey Standard Oil Company accepted a new agreement from Venezuela as a "groundbreaking event" based on the principle of 50 to 50 in 1943. In 1945, after the coup dictated the rule of governance to the left-handed government including Juan Pablo Pérez Alfonso, more favorable conditions of Venezuela were negotiated. In 1958, a new government including Perez Alfonso again drew up a plan for an international oil cartel, which will be an oil exporting country organization. In 1973, Venezuela approved nationalization of the oil industry, and since 1st January 1976, Petróleosde Venezuela (PDVSA) has hosted several holding companies. In the following year, Venezuela has established a large-scale refining and marketing system in the US and Europe.

The history of Venezuela is closely related to the development of the oil industry. As one of the world's leading oil producers, this product is politically and economically the determinant of the country. Current Venezuelan President, Hugo Chavez Frias, was criticized as opposed to the privatization of the oil industry and was called by the United States as a Communist dictator for his political task. In the next article I will explain the current state of Venezuela, the historical background, the new Constitution of Venezuela, the importance of oil, and the members of the Petroleum Export Organization.