Venezuela“The Perils of Petrocracy”

Nationalization

What percentage of world oil reserves is held by national oil companies, with no private equity?

A: 13% C: 50%

B: 37% D: 77%

Correct Answer: 77%There are also 13 state-owned oil companies with more reserves than ExxonMobil

ExxonMobil is the largest multinational oil company in the world.

Chávez as a prophet...

What does Chavez call his invented brand of socialism?

Bolivarian Socialism - Named from Simón Bolívar: a little Marx, a little Jesus, a little anti-imperialism, and a lot of his dedication to the “comprehensive, humanist, endogenous and socialist development of the nation.”

What is Pdvsa - and what sort of effort is it using to help the country?

Pdvsa is the personal oil company of Chavez - they are investing the company’s profits in helping dropouts finish high school.

Issues with Nationalized Oil Companies

Cost

Research & Development

Attempting to keep capacity

Re-investment

Pdvsa... the best?

What company did Pdvsa take over in the form of Nationalization in January of 1976?

Exxon - the company changed nothing but the name which was essential to the seamless transition - until Chavez of course.

Pdvsa at one point in history is the best example of a nationalized oil company.

Nearly 10 years later - As the company sinks farther into debt now, this is simply not the case any longer.

http://www.youtube.com/watch?v=wBJTdkenjSA

The Poor Get Rich...sort of.

The gains in health, education and housing have been significant.

What next?

What do you feel will happen next - does nationalized oil companies lead to corruption?

Should all oil be privatized?