Venezuela's Oil Paradox: World's Largest Reserves, Yet Ruined. Why?
World
M
Moneycontrol•03-01-2026, 19:56
Venezuela's Oil Paradox: World's Largest Reserves, Yet Ruined. Why?
- •Venezuela, despite having the world's largest oil reserves (303 billion barrels), faces hyperinflation, unemployment, and mass migration.
- •Reasons include costly extraction of heavy oil, political weakening of state oil company PDVSA, and over-reliance on oil exports.
- •Unsustainable government subsidies and excessive money printing led to 1,000,000% inflation and currency collapse.
- •US sanctions since 2019, citing political instability and human rights, severely impacted oil sales and revenue.
- •A recent US military operation on Jan 3, 2026, targeting Maduro, escalates tensions, raising fears of regional destabilization.
Why It Matters: Venezuela's crisis stems from economic mismanagement, over-reliance on oil, and international pressures despite vast reserves.
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