Good afternoon family steemit, I'm doing my research about the fall of the oil and I got this article from the national and it seemed very important to check it and I hope you give me your opinion.
The oil sector of Venezuela, the country with the largest reserves on the planet, is experiencing a deep crisis caused by the lack of investment and mismanagement, a situation without any signs of improvement in the short term, analysts said consulted by the AFP.
Given the statement made by the Venezuelan oil minister, Nelson Martínez, who told OPEC on Thursday that the sector is operating "normally," analysts draw a much more complex and pessimistic outlook, where Petróleos de Venezuela (PDVSA), the national company , it is the weakest link.
"PDVSA is obligated to import US products and oil at international prices and it would not have to. It is a disastrous management ", summarizes Gonzalo Escribano, responsible for the energy program of the Elcano Royal Institute.
And this, in the first place, resulted from a production in constant decline for more than a decade and which confirms the latest figures from OPEC.
In April, Venezuelan crude oil production fell by 0.46 million barrels per day (mbd) to 2.194 mbd, which represents a fall of around 17% since 2015.
"It's a typical case of lack of investment," says Abhishek Deshpande, a Natixis oil analyst.
"The real problem is that PDVSA has become the government's dairy cow but there have been no investments, so it does not increase productivity, and it is forced to import oil regularly from the United States," says Christopher Dembik, head of economic research at Saxo Bank.
To the paradox of a country rich in natural resources but with a declining economy (what economists call "the curse of resources" and suffering other countries of the globe) is now joined by a political and social crisis.
In a context of scarcity of basic goods and with the highest inflation in the world, which the IMF projects at 720% this year, Venezuela has been experiencing a wave of violence for almost two months due to street protests.
In almost two months of demonstrations against the socialist government of Nicolás Maduro, more than 55 people have died.
"The companies that invest in Venezuela are losing faith in receiving the fruits of their investments. To stop the decline [of production] it is necessary to invest, but there will be no investments while the country is still in crisis ", warns Abhishek.
Hi and welcome here! When I started on steemit, my biggest problem was to find interesting people to interact with. So, to help newcomers getting started I created a directory with other interesting and or talented steemians to follow or interact with. Feel free to check it out at https://www.steemiandir.com I am sure it will help you find like-minded people. Enjoy your stay here and do not hesitate to contact me if you have any questions!
Hello Dear,
Welcome to the amazing world of Blogging and Sharing. Being Original is the only way to get success on this platform, so avoid Plagiarism of any kind. Another important suggestion is to be part of Community. It helps you to find right direction and support you to grow.
I would advise to make use of Partiko mobile app, to keep your stay more convenient and happy. Use my Referral link https://partiko.app/referral/steemflow to get access to freedom
It gives you the foundation support to build own castle. Myself being a Partiko Mentor, found this app very useful in making engagement possible and very easy to operate. It is good to give a helping hand to all newbies.
A must for Steem, If you would be interested to know more, feel free to ask anything about Partiko or Steem ....Make yourself Comfortable and feel like home .👍
Upvoted👌
Thanks & Namaste
@steemflow
Posted using Partiko Android
Welcome to steemit @rayo2321.
Welcome the new steemians. Have a great day!