Capital of Venezuela: Caracas
Oil energy in Venezuela
Venezuela is one of the world's major oil producers and exporters and one of the five founding members of the Organization of the Petroleum Exporting Countries (OPEC).
1. Conventional crude oil
By the end of 2022, Venezuela's recoverable reserves of conventional oil were about 10-11 billion tons, or about 80 billion barrels.
In addition to conventional oil, Venezuela has an Orinoco heavy oil belt.
Venezuela's Orinoco Heavy Oil Belt, the world's largest concentration of heavy oil, is located on a north-dipping monoclinic on the southern margin of the Eastern Venezuela Basin, and was only discovered in 1935. The heavy oil zone with a total area of about 54,000 square kilometers, with total reserves of about 200 billion tons and recoverable reserves of about 50 billion tons.
Capital of Venezuela: Caracas
2. Heavy oil reserves
Venezuela's total geological reserves are about 1.2 trillion barrels of heavy oil, and at the current level of technology, it is expected that the recoverable reserves will be about 250-300 billion barrels of light crude oil.
Heavy oil, also known as fuel oil, is a dark black liquid characterized by a large molecular weight and high viscosity. Heavy oil has a nickname called "Big Old Black", also called "Can't Burn Through", the first nickname is because of its black shape, and the second nickname is its low utilization rate.
However, the current technology has made it possible to refine heavy oil, and hydrocarbons, olefins, etc., such as kerosene, benzene, gasoline, paraffin, asphalt, etc. Strictly speaking, petroleum is composed of hydrocarbons composed of hydrogen and carbon, and the four hydrocarbons with the smallest molecular weight are all gas gas.
Venezuela's oil extraction is now down
3. Overall mineable amount
Therefore, Venezuela's total recoverable crude oil reserves are about 330-380 billion barrels, ranking first in the world, and more than four times Russia's oil reserves of 70-80 billion barrels.
Based on 300 days of production per year, if 800,000 barrels of crude oil are produced per day, it can last for about 1500 years; If 2 million barrels of crude oil are produced per day, it can last for about 600 years.
Venezuelan President Nicolas Maduro, right, has been cheering on oil workers
Clean energy in Venezuela
(1) Natural gas
Venezuela is rich in natural gas reserves and ranks 8th in the world. Proven natural gas reserves of more than 57 trillion cubic meters have been established, accounting for about 3% of the total global natural gas reserves and more than 60% of the total natural gas reserves of the entire Latin America.
(2) Hydroelectric power generation
Venezuela's hydropower resources are also relatively developed, and hydropower covers most of the country's electricity production. In 2020, Venezuela's total installed hydropower capacity was 16,521 MW, accounting for about 85% of the country's total electricity generation.
(3) Solar energy
Venezuela's solar energy resources are also good, the country's theoretical solar power generation of 5.35 kilowatts per cubic meter per day, one of the highest in South America. In 2020, the actual use of photovoltaic power generation in Venezuela will be about 50 GWh, 1 GW = 1 billion watts.
Guri Hydroelectric Power Station in Venezuela
(4) Wind power generation
In order to further promote the development of the renewable energy industry, the Venezuelan government has put forward specific development goals for scenery. Venezuela plans to build 10,000 megawatts of wind farms over 15 years.
So the problem is, if Venezuela wants to make good use of these abundant and low-cost clean energy, it must have enough dollars: to introduce relevant technologies, purchase related equipment, long-term parts maintenance and equipment upgrades.
At the end of the day, dollars are needed.
Venezuelan wind power
Precious metals and other minerals in Venezuela
Venezuela has 792 tonnes of gold reserves available for exploitation, ranking fourth in the world. But Venezuela's gold mines have possible reserves of more than 8,000 tonnes.
The most important mining area in Venezuela is the Orinoco Belt.
The types of minerals there include gold, iron ore, bauxite, etc., and the entire mineral belt covers an area of about 110,000 square kilometers, with proven gold reserves of about 4,136 tons and prospective reserves of more than 7,000 tons.
In addition, there are about 33.79 million carats of diamonds, 3.64 billion tons of proven iron ore reserves and 14.68 billion tons of bauxite. In addition, there are abundant coltan, kaolin, copper, nickel, phosphate, titanium ore and other resources.
Venezuelan Gold Belt
How the United States is taking Venezuela to the extreme in its resources
Hyperinflation reaches 1 million
1. A period of glory and abundance
Since its founding in 1830, Venezuela has enjoyed nearly 200 years of development.
In the course of these 200 years of historical development, Venezuela has also ushered in its own highlight moment. In the 80s of the 20th century, Venezuela was the richest country in Latin America, and it reached the fourth place in the world when its per capita GDP was the highest.
At that time, the US media found that Venezuela's per capita GDP could exceed 40% of the US per capita at its peak, which was a very amazing achievement in the 80s.
Now hyperinflation in Venezuela
2. The reality of a sharp turn
On February 2, 1999, Chávez was sworn in as Venezuela's president, and since then he and his successor have embarked on a staunch anti-American path for more than 20 years.
(1) By 2022, Venezuela's GDP will collapse by more than 50% above the historical average.
(2) In 2019, the hyperinflation in Venezuela reached 1 million, and the people's life was very difficult.
(3) Since 2015, more than 7 million people have fled Venezuela, and the population in the country's history was less than 32 million.
Today, Venezuela not only has a complete economic collapse and the people's lives are difficult, but also its political prestige has collapsed, and the contradictions between various social strata have become increasingly intensified.
Now hyperinflation in Venezuela
3. U.S. sanctions
What methods did the Americans use to sanction Venezuela, which is clearly favored by God, into the field it is today?
(1) The turning point was 2017.
In the 18 years before 2017, the US sanctions against Venezuela were limited to military sanctions, and did not involve sanctions on energy, gold, finance, etc., and Venezuela could get foreign exchange for the export of various resources from the SWIFT international settlement system every month.
Beginning in 2017, the United States imposed comprehensive sanctions on Venezuela.
Now hyperinflation in Venezuela
(2) Sanctions on oil and gas.
Starting in 2017, the United States not only no longer buys Venezuelan oil and gas itself, but also requires developed countries and industrial powers, which are large buyers of oil and gas, not to buy Venezuelan oil and gas.
(3) Sanctions against gold, diamonds, etc.
Similarly, Venezuelan gold, diamonds, copper ore and other precious metals are not allowed to be traded internationally. If through secret channels, such as smuggling, the United States will not only confiscate, but also sanction the countries or organizations involved in the transaction.
Now hyperinflation in Venezuela
(4) Sanctions against sovereign bonds, etc.
Financial products such as Venezuela's sovereign bonds and shares in state-owned oil companies and gold mining companies are not allowed to be traded internationally.
(5) SWIFT international settlement system.
Although the United States will give Venezuela a certain oil and gas export quota every month or quarter, because the United States controls the SWIFT international settlement system, it is difficult for Venezuela to get payment in a short period of time.
(6) Control the Panama Canal.
The Venezuelan government's exports of oil, natural gas, gold and other minerals will go through the Panama Canal, otherwise the voyage and freight costs will greatly increase the cost. But everyone knows the passage of the Panama Canal and the influence of the United States on it.
Now hyperinflation in Venezuela
(7) Support the domestic opposition.
Although Maduro, backed by Russia, narrowly won and was re-elected in the 2018 Venezuelan presidential election after a second round of voting, the United States is not willing to continue to support Guaido, the leader of Venezuela's opposition and former parliamentary president.
In the first round of voting in 2018, Guaidó had already obtained a majority of votes and delivered a speech in victory, only to turn from victory to defeat and be imprisoned by Maduro for a while.
Now hyperinflation in Venezuela
The choice of the United States, Venezuela
It is all forced by the situation and each takes what he needs
Venezuela was once one of the world's largest oil producers.
In the 90s of the 20th century, Venezuela produced more than 3.2 million barrels of crude oil per day, and today, it is only 780,000 barrels per day.
In 2014, more than 80 drilling rigs were working in Venezuela, and now only one rig is still operating normally.
After taking office, US President Joe Biden has completely changed Trump's foreign policy, including towards Venezuela.
Current US President: Biden
At the beginning of 2023, the media released news that the United States is secretly negotiating with the Venezuelan government to ease various sanctions against Venezuela, especially on energy, on the condition that Venezuela changes its domestic and foreign policy.
On October 20, 2023, the United States and Venezuela jointly announced that Venezuela will hold internationally supervised democratic elections ahead of schedule in 2024, and the United States will relax sanctions on energy and finance for six months.
At present, there are at least four unfavorable backgrounds for the United States: the ongoing war in Ukraine, OPEC and Russia have announced oil production cuts, the outbreak of the Middle East-Kazakhstan war, high domestic inflation in the United States, and so on.
The United States' wishful calculation is that obtaining sufficient supplies of oil, natural gas, gold, various minerals and other supplies from Venezuela as a close neighbor will not only reduce a lot of economic burdens, but also be a major breakthrough in politics and diplomacy, and may even affect the election situation in the 2024 US election.
Current US President: Biden
Venezuelan President Madura has long been helpless in the face of the collapsed economic status quo and the political crisis from which the current government cannot escape.
If the sanctions can be lifted by the United States at this time, even if only temporarily in energy and gold, the Maduro government can breathe a breather in the more deadly domestic political crisis.
Maduro even wants to take the opportunity to bring in significant U.S. investment, and he has made no secret of saying that he is also a realist.
Chávez's friend and current Venezuelan president: Maduro