Venezuela’s collapse is a window into how the Oil Age will unravel

Nafeez Ahmed
Jan 31, 2019 · 19 min read
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Protestors clash with police in Caracas (Source: REX / Shutterstock)

Published by INSURGE INTELLIGENCE, a crowdfunded investigative journalism project for people and planet. Please support us to keep digging where others fear to tread.

Before Chavez

“… economic collapse and party system collapse — are intimately related. Venezuela’s repeated failure to reform its economy made existing politicians increasingly unpopular, who in turn responded by privileging populist policies over real reforms. The result was a vicious cycle of economic and political party decay, ultimately paving the way for the rise of Chavez.”

Dead oil

“…. oil production in Venezuela is comprised of increasingly heavier oil and thus less profitable, PDVSA’s operated production is falling more rapidly, and the production that generates cash-flow is almost half of the total production. These trends were problematic enough at peak oil prices, but with prices falling they become much more acute.”

The folly of endless growth

Climate wild cards

Economic war

“… we’re in conversation with major American companies now… I think we’re trying to get to the same end result here… It will make a big difference to the United States economically if we could have American oil companies really invest in and produce the oil capabilities in Venezuela.”

The coming oil crisis

“When you look at oil companies’ presentations, there’s something that doesn’t make sense because they show their investors these beautiful investor decks with gorgeous slides indicating that they will produce an 80% or 60% internal rate of return. And then you go to the corporate level and you see that the company isn’t making money, and you wonder what happened between point A and point B.”

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Nafeez Ahmed

Written by

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INSURGE intelligence

We are crowdfunding adversarial investigations into power, to empower people and save the planet. Join us via www.patreon.com/nafeez

Nafeez Ahmed

Written by

Systems journalist. Crowdfunding investigations: http://patreon.com/nafeez

INSURGE intelligence

We are crowdfunding adversarial investigations into power, to empower people and save the planet. Join us via www.patreon.com/nafeez

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