Given that Venezuela has the most oil reserves in the world, why isn’t the country as rich as Saudi Arabia? Also, why have so many of the major oil companies stopped operating there?

Question

Given that Venezuela has the most oil reserves in the world, why isn’t the country as rich as Saudi Arabia? Also, why have so many of the major oil companies stopped operating there?

In: 8

Answer 1

Im going to say (in an attempt to NOT be as politically charged.)

Venezuela did in fact attempt to nationalize their oil. Unfortunately they did not have the tools to run an oil industry long term. Lack of organization, no way to train future workers, etc. They then attempted to bring in people who while qualified to lead, was unqualified in adapting to their particular situation. They took the revenue and didn’t invest or have knowledge of the structure of an oil company and the machinations that make an oil company

Answer 2

Im going to say (in an attempt to NOT be as politically charged.)

Venezuela did in fact attempt to nationalize their oil. Unfortunately they did not have the tools to run an oil industry long term. Lack of organization, no way to train future workers, etc. They then attempted to bring in people who while qualified to lead, was unqualified in adapting to their particular situation. They took the revenue and didn’t invest or have knowledge of the structure of an oil company and the machinations that make an oil company