Chavez 's Control Of The State Oil Company

1077 Words Dec 5th, 2015 5 Pages
“From 1999-2003, the government did not control the state oil company; in fact, it was controlled by his opponents, who used it to try to overthrow the government, including the devastating oil strike of 2002–2003. For that reason, a better measure of economic growth under the Chávez government would start after it got control over the state oil company, and therefore the economy.” (Kozameh, 2014) In 2003, Chavez gained control of Petroleos de Venezuela (PDVSA) after the strike. Because of this control, Chavez had direct control over oil revenue. As Chavez gained power, the transparency with PDVSA went away and the company neglected to produce numbers and statistics on production or sales. Funding through PDVSA for discreet outside social products had oil prices on the rise and fund accounts skyrocketing. Chavez and the Venezuelan nation gradually swept up more resources, the transparency of all suffered. Millions of dollars were transferred out of the Venezuelan Central Bank by the Chavez government into offshore accounts.
Before Huge Chavez rose to power, Venezuela was slightly dependent on its oil production. By the end of Chavez’s reign, the Venezuelan economy was almost entirely reliant on the oil industry. By 2011, the oil industry made up 96 percent of Venezuela’s exports. Hugo Faria, author of Chavez Against the Backdrop of Venezuelan Economic and Political History, found that:
“Chavez buys influence through oil. It is a form of blackmail: At OPEC, Chavez fights…
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