1. Venezuela was one of the founding members of
the Organisation of Petroleum Exporting
Countries (OPEC) and has proven oil reserves
estimated to be around 76 billion barrels in 2005,
representing 6.5% of known world reserves. Oil
production in Venezuela commenced in 1878 but
commercial production did not begin until 1914.
Today, oil dominates the Venezuelan economy
and oil production currently stands at around 3.3
million barrels a day or 3.7% of world production.
silver stocks

2. Current reserves are expected to last nearly 80 years Venezuela
has the ninth largest gas reserves in the world but gas infrastructure
is undeveloped Current reserves are estimated at 14 trillion square
metres but the petroleum industry consumes 70% of domestic gas
production Venezuela also produces Orimulsion from the Orinoco
belt which consists of an emulsion of water and oil The name
Orimulsion is trade mark protected The current Venezuelan
administration is striving to achieve full national sovereignty over its
natural energy reserves

3. PDVSA's own website states its intention to "put the oil resources to
the service and well being of the country; to build a new economic
and social model, ending inequalities that have been present in
Venezuelan society over the last decades PDVSA stimulates the
endogenous development of communities, realising a fair distribution
of the NationÂ’s oil wealth " On January 1 2006 PDVSA took back
32 oil fields silver stocks from private companies including Total, Eni,
Chevron, Royal Dutch Shell and Repsol after declaring that
previously signed operating agreements should have been set at a
tax rate of 50% not 34% British Petroleum (BP) was also handed a
bill for back taxes for $61 4 million in March 2006 Venezuela
exported US$38,971 million in 2005 primarily to the USA, Europe
and Latin America

4. In fact, Venezuela is one of the largest exporters of crude oil to the
USA and supplies on average 15% of its requirements Of this
around 1 5 million barrels a day of oil and by products are exported
under long term agreements The current administration has
attracted criticism and praise for using oil profits to fund social
programmes both at home and abroad - Citgo (the retain and refining
arm of PDVSA in the USA) has even started selling subsidised
heating oil to deprived communities in the USA Venezuela has
adhered strictly to its OPEC production quotas since the inauguration
of Hugo Chavez The war in Iraq had boosted oil prices and
effectively transferred billions of US$ from oil importing countries
such as the USA to exporting countries such as Venezuela

5. Oil prices increased by nearly $30 a day between 2002 and 2005
and the value of global exports doubled to nearly $800 billion in 2005
Whilst the current oil price rises are not as significant as those of the
1970s the extra profits generated for oil producing countries is
already affecting domestic and global finances Venezuela's mineral
deposits include iron, bauxite, coal, gold, phosphate, limestone and
nickel Gold mining stated in Venezuela in the 19th century and the
country holds 12% of known world gold reserves in 2004 gold
production stood at 9690 kilograms Gold is mined by private
companies under concession and small scale artisan miners The
largest private gold producing company in Venezuela is Hecla Mining
Company which operates the La Camorra mine in the state of Bolivar

6. Gold mining is particularly controversial in Venezuela and in
September 2005 social hundreds of small scale miners blocked
roads and held demonstrations in protest against the government
decision to grant gold mining concessions to Crystallex International
Corporation, a Canadian mining company The state owned mining
company is Minerven Mining is banned in some areas in order to
protect indigenous communities and the environment but illegal
mining continues The government has promised to monitor and
review this situation Indigenous communities in states of
Anzoategun, Monagas and Sucre have recently been granted some
communal land rights to farm and fish but this does not include
ownership of minerals in the ground Any mining activities must be
authorised by the government and minerals reserves, like
hydrocarbons, belong to the state

7. Royalty payments and production taxes also apply Mercosur, the
South American trading block, has agreed to admit Venezuela as a
member Other members include Brazil, Argentina, Paraguay and
Uruguay The aim of the block is to facilitate regional economic
integration and cooperation, and requires commitment to democratic
standards However it will be some time before Venezuela can be a
fully participating member because it is already a member of the
Andean Community of Nations with a different tariff regime
Venezuela indicated its intention to withdraw from the Andean
Community, which is more sympathetic to the US than Mercosur, in
April 2006 as a result of trade deals between Peru, Columbia and the
US

8. The current government of Venezuela is attempting to integrate the
Latin American energy markets, and ultimately the regional
economy, through energy ventures and agreements with other
countries Chavez signed an agreement with the President of Cuba,
Fidel Castro, in 2000 to export cheap oil to Cuba Venezuela is also
a signatory to the San Jose Accord with Mexico to supply oil to 11
countries in Central America and the Caribbean at preferential prices
In return Venezuela receives subsidised agriculture and industrial
products, and medical services Hugo Chavez has invested in other
foreign energy ventures including a joint venture with Cuba to
develop the Cienfuegos refinery in Cuba and energy infrastructure
projects to construct new gas pipelines in South America Venezuela
enjoys a large trade surplus as a result of its oil exports and its trade
balance stood at US$31

9. 5 million in 2005 The value of trade exports more than doubled
between 1996 and 2005 as a consequence of oil price rises and a
growth in other export goods Venezuelan exports were worth US$55
5 million in 2005 and oil exports accounted for US$39 million of this
Venezuela's major trading partners are the US, Colombia, Brazil,
Mexico, Germany, the Netherlands, Japan, Ecuador and China The
US was the destination country for 55% of Venezuelan exports whilst
Venezuela imported 33% of its imports from the US

10. Despite the importance of trade between Venezuela and the USA
relations between the two countries are fraught The Venezuelan
government has claimed that the US Central Intelligence Agency
(CIA) was involved in the 2002 coup In February 2005 the foreign
minister of Venezuela asked the Organisation of American States
(OAS) to investigate an alleged attempt to assassinate the president,
and cited a number of anti Chavez statements made by US officials
US officials have denied these allegations whilst Hugo Chavez has
threatened to cut off oil exports The US has supported Colombia
during recent conflicts between Venezuela and Colombia
Copyright: Rowena Slope (2006)

11. silver stocks