1. Venezuela
“The Perils of Petrocracy”

2. Nationalization
What percentage of world oil
reserves is held by national oil
companies, with no private equity?
A: 13% C: 50%
B: 37% D: 77%

3. Correct Answer: 77%
There are also 13 state-owned oil
companies with more reserves than
ExxonMobil
ExxonMobil is the largest multinational oil
company in the world.

4. Chávez as a prophet...
What does Chavez call his
invented brand of socialism?
Bolivarian Socialism - Named from
Simón Bolívar: a little Marx, a little
Jesus, a little anti-imperialism, and a
lot of his dedication to the
“comprehensive, humanist,
endogenous and socialist
development of the nation.”

5. What is Pdvsa - and what sort of
effort is it using to help the
country?
Pdvsa is the personal oil company
of Chavez - they are investing the
company’s profits in helping
dropouts finish high school.

6. Issues with Nationalized
Oil Companies
Cost
Research & Development
Attempting to keep capacity
Re-investment

7. Pdvsa... the best?
What company did Pdvsa take
over in the form of Nationalization
in January of 1976?
Exxon - the company changed nothing
but the name which was essential to the
seamless transition - until Chavez of
course.

8. Pdvsa at one point in history is the
best example of a nationalized oil
company.
Nearly 10 years later - As the company
sinks farther into debt now, this is simply
not the case any longer.
http://www.youtube.com/watch?
v=wBJTdkenjSA

9. The Poor Get Rich...sort of.
The gains in health, education and
housing have been significant.

10. What next?
What do you feel will happen next
- does nationalized oil companies
lead to corruption?
Should all oil be privatized?