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?