Chavez Oil wealth distribution facts

Some people around the world think Hugo Chavez government is finally doing justice by really redistributing oil wealth in Venezuela. These people tend to think that before Chavez government, the oil of the country was in hands of foreign oil corporations who sucked as much as they can this natural resource out of the country, without giving a dime to the people nor the country.

So, to clarify the truth about this redistribution here are some facts:

1. Venezuelan natural resources have been under government control since the country was founded, almost 200 years ago. Well before Chavez was born.
2. During the 1950’s and 60’s all oil production was made by US Corporations under an agreement called fifty fifty. Revenues were divided in 50% for the company, 50% for the country. With this agreement the government didn’t expend a dime, however it received a lot. During those two decades the country experimented one of the fastest economical growth of the planet. This happened when Chavez was a child.
3. In 1973, the government decided to nationalize all oil, aluminum, and iron operations, from extraction to exports (sale). Of all these industries, only the oil kept producing profits, the rest were politized by subsequent governments. However financial control of the Oil company created after nationalization (PDVSA) was limited. Since 1973, all the income related to the oil operations in Venezuela has been controlled and owned by the government. When Chavez was a youngster.
4. After years of operations with limited financial freedom, PDVSA came into problems since it didn’t have any money to continue exploring and investing in its own territory. For this reason, the country decided to open-up its oil fields in order to ramp-up production. This was preferable than to loan money. However, the production for these ‘new’ companies in the country, was always going to be monitored by PDVSA. No company could do what it wanted. During this time, Chavez was in jail for trying a failed coup d’etat against Venezuela democracy.
5. When the current government -Chavez as president- ‘nationalize’ the oil (some years ago), what in reality did was to take out the previously agreed control of some oil fields operated by foreign companies, but make no mistake, the best fields were and are still operated by PDVSA, except the Deltana Platform. This is a field operated by Chevron Texaco, and the go-ahead of production for it was given during the Chavez government, not before.

Social justice with oil money being re-distributed in Venezuela?

So as you might see, this control of the oil industry in Venezuela talked by the Chavez government its nothing new, since it existed for the last 35 years, the government of Venezuela (whoever presides it) had control of it by legal means. Re-nationalization is a new term of an old scheme. Certainly the blame can be out on previous Venezuelan governments for failing to distribute this wealth, but you can’t blame foreigners (US government or oil corporations) for the failures of the programs, for this only Venezuelans are to blame.

Another Chavez article: Chavez democratic electoral system: The Matrix (click it)