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Venezuela is the country with the largest proven oil reserves in the world, exactly with 303 billion barrels in January 2020 an amount undoubtedly an impressive sum Venezuela also has the largest reserves of light crude oil throughout the western hemisphere its oil activity has declined since the end of the first decade of the XXI century and by 2020 recorded an average production of 500,000 barrels per day and an export of 376,500, both the lowest in about 80 years. 000 barrels per day and an export of 376,500 barrels per day, both the lowest in about 80 years, since 2018 the oil industry started a fall from which it has not yet recovered, next I will show you an analysis of the real price of oil in Venezuela from 1861 to 2015.
In Venezuela, oil activities began in pre-Hispanic times, when oil was only used for caulking and waterproofing ships, but its exploitation began formally in colonial times, and its large-scale exploitation began in 1914 during the government of General Juan Vicente Gómez. It was since then that the oil industry in Venezuela grew and strengthened to the point where all the assets of the oil companies were nationalized in 1976.
Modern world oil exploitation had begun in 1859 when the so-called Colonel Edwin Drake, in Titusville, drilled a well and found oil at a depth of twenty-one meters. Oil fever broke out in North America, drilling multiplied, land increased in price and farmers became oilmen.
In spite of the knowledge of the existence of oil in Venezuela for centuries, this resource became really important with the arrival of the 20th century and the first wells of real importance were not drilled until the decade of 1910. The then President Cipriano Castro approved a new Mining Code for the Nation on January 23, 1904, thus establishing a principle that would dramatically mark the course of the oil industry until its nationalization.
After the 1973 oil crisis, the period was one of moderate economic prosperity for Venezuela. In 1979 it reached its peak price of US$40 a barrel because the crisis in the Persian Gulf during the Yom Kippur War was relatively short-lived. This was especially the case during the oil glut of 1980. OPEC member countries were not adhering strictly to their allocated quotas, and again oil prices plummeted. In the 1990s, the symptoms of Dutch disease were once again evident. Between 1990 and 1999, Venezuela's industrial production fell from 50% to 24% of the country's gross domestic product compared to a decline of 36% to 29% for the rest of Latin America. On top of all these issues, PDVSA's efficiency was in question in recent years. From 1976 to 1992,