Venezuela has the largest conventional oil reserves and the second-largest natural gas reserves in the Western Hemisphere. In addition she has non-conventional oil deposits (extra-heavy crude oil, bitumen and tar sands) approximately equal to the world's reserves of conventional oil. Wikipedia

Venezuela oil

The oil industry has its roots in Venezuela on 1914, when it was discovered the Mene Grande field in Lake Maracaibo's east coast on Zulia State; and its oil opened the world energy markets to Venezuela. This gave rise to an activity which, with financial technological and managerial resources provided and handled by foreign oil companies, came to be extended to all the country's sedimentary basins and gave significant international stature to the exploitation of Venezuela oil resources.

Venezuela nationalized its oil industry in 1975-1976, under the government of President Carlos Andrés Pérez, and Petroleos de Venezuela (PDVSA) oil company was found. On 1st January 1976, the properties, plants and equipment of the foreign concessionary companies, as well as the modest assets of the Venezuelan oil companies, became the property of the state. PDVSA is the country's state-run oil and natural gas company.

The policy changed in the 1990s, when Venezuela introduced a new oil policy known as "Apertura Petrolera" (Oil Opening), which opened its upstream oil sector to private investments. This facilitated the creation of 32 operating service agreements with 22 separate foreign oil companies.

Venezuela oil refinery

Alexander's Gas & Oil Connections

Wikipedia

PDVSA

Venezuela is to be found among the six countries in the world with the largest proven reserves of oil (over 74 bn barrels) and with a business attitude willing to raise production capacity to meet growing demand. World demand should reach over 86 mm bpd by 2020; the figure represents a 21 mm bpd increase in oil demand beginning in 1990. Other OPEC countries which would join Venezuela in supplying the additional demand are: Saudi Arabia, United Arab Emirates, Iraq, Iran, and Kuwait. Venezuela's position in this line-up is being duly ensured by PDVSA. Alexander's Gas & Oil Connections

Chavez oil

When Hugo Chávez took the power in 1999 Venezuela oil policy has been having a wide change. In recent years the Venezuelan government has reduced PDVSA's previous autonomy and amended the rules regulating the country's hydrocarbons sector. In 2001, Venezuela passed a new Hydrocarbons Law that superseded the previous 1943 Hydrocarbons Law and 1975 Nationalization Law.

In 2006 said President Hugo Chavez said he wants a real nationalization of all Venezuela oil business as, according to him, petroleum in Venezuela is part of the country's sovereignty. In 2007, Chávez announced a new nationalization of the oil industry. The foreign oil companies were forced to sign agreements giving majority control of hydrocarbons projects to PDVSA.

Venezuela nationalization

Nowadays, negotiations are continuing between foreign oil companies and Venezuelan authorities concerning appropriate compensation for each company's interests, specially on the Orinoco petroleum belt, which is a territory which occupies the southern strip of the eastern Orinoco river basin in Venezuela. The reserves of hydrocarbons (which include the Orinoco belt) have been estimated to contain up to three trillions barrels of oil, which would make the largest petroleum reserves in the world, before Saudi Arabia.