Nobel Peace Prize winner Maria Corina Machado wisely calls for privatizing Venezuela’s oil and gas industry, which was highly respected prior to the Chavez regime. The national oil company, Petróleos de Venezuela (PDVSA), is now a corrupt arm of the Maduro government.
In the 25 years since the election of Hugo Chavez, Venezuela went from being the richest country in Latin America to becoming one of the world’s poorest. From 2012 to 2022, the Venezuelan economy contracted by 75%.
Followers of the Aban Pearl saga got a sense of the Chavez regime’s corruption with this comment from a PDVSA board member:
“The whole Board is responsible for the loss of about 800,000 barrels per day of oil production; for the fraudulent certification of “proven oil reserves” in the Orinoco heavy oil region; for the irregular contracting, with a ghost company, of the offshore drilling barge Aban Pearl for twice the amount really paid to the owners of the barge; for the importing of 180,000 tons of food that later went to rot in Venezuelan ports but provided some of the members of the board with millions of dollars in criminal profits; and in numerous other corrupt practices that are well documented.“
Machado’s oil and gas platform is pasted below. She has a good perspective on the proper role of govt.
Privatization and reactivation of oil and gas production by attracting specialized international and national companies. Venezuela has one of the world’s largest reserves of oil and natural gas. As per the Organization of Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA),
the country has reserves of over 300 billion barrels of oil and 200 trillion cubic feet of natural gas. The goal in this area is to steadily increase oil and gas production in order to leverage the window of opportunity that exists in today’s global demand for hydrocarbons. Achieving this objective will require enormous investments that the Venezuelan State cannot undertake. The solution is to attract private capital, and the strategy to achieve this end is the industry’s privatization. Where appropriate, all the industry’s productive activities will be privatized in order to secure massive private investments and a sustained increase in production, under conditions that guarantee legal certainty and an environment that is attractive for investors. The State will continue to receive fiscal income in the form of royalties and taxes, and will ensure that an operational framework exists in which private companies can increase production in the shortest possible timeframe. A Venezuelan Energy and Petroleum Agency will be established to exercise the role of industry regulator. Oil privatization will allow Venezuela to regain its position as a safe and reliable supplier, and will provide unparalleled investment opportunities in the industry.
Bud's Offshore Energy (BOE) 