"US President Donald Trump pledged in the immediate aftermath that the US would "run" Venezuela, a move that appeared to hinge on how the US would approach the country's key commodity: oil. "We're going to have our very large United States oil companies, the biggest anywhere in the world, go in, spend billions of dollars, fix the badly broken infrastructure, the oil infrastructure, and start making money for the country," he said."
"Venezuela's fragile economy is exceptionally dependent on oil. Maduro's government has been almost entirely dependent on the hydrocarbon for state income. Crude oil and related products such as petrochemicals account for around 90% of Venezuela's export revenues. They helped keep the heavily sanctioned and isolated government in power despite a severe economic crisis. Venezuela has the world's largest proven oil reserves, with over 300 billion barrels available even more than Saudi Arabia."
Venezuela's economy relies almost entirely on oil. Crude oil and petrochemicals make up about 90% of export earnings. The country holds over 300 billion barrels of proven reserves, more than Saudi Arabia. Despite huge reserves, Venezuela now produces less than 1% of global oil, down from over 10% in the 1960s. Crude production has fallen over 70% since the late 1990s. The collapse stems from policies during Hugo Chavez's government, widespread corruption at state oil firm PDVSA, and the exodus of foreign investment. Accidents at pipelines and refineries worsened output. US sanctions since 2017 further constrained oil production and exports.
Read at www.dw.com
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