America takes a leadership role to reduce fossil fuel consumption; President Biden ‘Green New Deal’ Administration refuses to dialogue with American Energy Executives In the Oil industry; notwithstanding Biden’s preference to buy the well-needed Oil from Venezuela; and Venezuela is a Petrostate highly dependent on fossil fuel.
Venezuela is a Petrostate where the government is highly dependent on fossil fuel income, power is concentrated, and corruption is widespread.
Council on Foreign Relations.
Written by Amelia Cheatham, Diana Roy, and Rocio Cara Labrador
- Venezuela is an example of a petrostate, where the government is highly dependent on fossil fuel income, power is concentrated, and corruption is widespread.
- Petrostates are vulnerable to what economists call Dutch disease, in which a government develops an unhealthy dependence on natural resource exports to the detriment of other sectors.
- Venezuela continues to grapple with economic and political hardship under President Nicolás Maduro, but U.S. efforts to ease some sanctions have sparked hope for a revival of the oil industry.
Venezuela fleet of Oil Tankers.
Venezuela has a Secret Weapon: A “Dark Fleet” Of Oil Tankers:
- The rise of the “dark fleet,” vessels that hide their locations to transport illegal oil cargoes, has enabled Venezuela to continue exporting oil in defiance of U.S. sanctions, contributing to its economic recovery.
- PDVSA, Venezuela’s national oil company, has leased numerous tankers, many in poor condition, to facilitate the clandestine shipment of oil, with Iran providing critical aid to rebuild Venezuela’s oil infrastructure.
- The expansion of the “dark fleet” enables PDVSA to export increasing amounts of oil undetected, which is crucial for the growth of Venezuela’s economy; as a result, the IMF predicts a 5% expansion in Venezuela’s GDP for 2023.