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

Venezuela used to be the wealthiest country in South America. However, they ended up nationalizing the oil companies which obviously drove all foreign companies out. Then, they spent all their oil revenues on Socialist policies instead of investing in their oil industry. Eventually all their old equipment broke down and oil production fell. The economic collapse then cause social unrest which the government reacted to violently which eventually sanctions which further destroyed the economy.

Answer 2

Venezuela used to be the wealthiest country in South America. However, they ended up nationalizing the oil companies which obviously drove all foreign companies out. Then, they spent all their oil revenues on Socialist policies instead of investing in their oil industry. Eventually all their old equipment broke down and oil production fell. The economic collapse then cause social unrest which the government reacted to violently which eventually sanctions which further destroyed the economy.