Venezuela claims to have the largest oil reserves in the world.
Miami Herald:
It turns out that Venezuela’s own
production of light crudes has plummeted since the late President Hugo
Chávez took office in 1999, and the country desperately needs light
crudes to blend with its Orinoco Basin extra heavy crude oils. Without
such a blend, the Orinoco Basin’s extra heavy crude is too dense to be
transported through pipelines to Venezuelan ports and exported abroad.
Venezuela’s oil production, which accounts
for 95 percent of the country’s export earnings, should be used in
world classrooms as a textbook case of what happens when a populist
government starts distributing a country’s wealth in cash subsidies,
without investing in maintenance and innovation. Much like happened with
Cuba’s once flourishing sugar industry, Venezuela’s Chávez-inspired
populism has destroyed the goose that laid the golden eggs.
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