Venezuela Industry Sectors
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Venezuela, once predominantly an agricultural economy, is known for its bountiful petroleum wealth. The nation went through significant economic turmoil during the 1980’s, when the Venezuelan petroleum industry suffered as a result of declining oil prices. During this period, the nation was burdened with high inflation and foreign debt, the load of which spilled over to most of Venezuela’s industry sectors. The Venezuelan economy has, nevertheless, recovered steadily and is still the richest nation in South America. During 2008, according to the CIA World Factsheet, the Venezuela industry sectors helped the nation attain GDP of $313 billion.[br]
Venezuela Industry Sectors: Major Players
The Venezuelan industry sectors play a significant role in the nation’s economy, accounting for employment of about 23% of its 12.67 million labor force in 2009. The status of some major players in the Venezuela industry sector presently is as follows:
Oil and Gas
Venezuela’s oil industry was nationalized in the 1970s, leading to the formation of Petroleos de Venezuela S.A. (PdVSA). Besides being the nation’s largest employer, PdVSA contributes about one-third of Venezuela’s GDP. According to EIA reports, Venezuela’s oil and gas sector averaged 2.2 million barrels/day in crude oil production in 2009.
Electric Power Generation
Venezuela’s electricity sector has been facing substantial criticism due to a significant shortage in electricity production. According to industry estimates, there has been a national shortage of 1,600 megawatts, which prompted the Chavez administration to create the Electricity Ministry in December 2009. The ministry has sanctioned the construction of about three dozen hydroelectric and thermoelectric plants to reduce Venezuela’s reliance on its largest dam.
Mining
Corporación Venezolana de Guayana (CVG) is the nation’s state-run mining company, which is involved in numerous joint ventures throughout the nation. Venezuela’s unique geology is home to a thriving mining industry, with several extraction plants of gold, nickel, bauxite and coal. In fact, Venezuela is a key coal producer in Latin America, along with Columbia.[br]
Venezuela Industry Sectors: Current Outlook
Industrial diversification is a priority under President Hugo Chavez’s government, for reducing the nation’s dependence on its oil revenues. The agricultural sector is a key focus area of the Chavez administration, as a mere 5% of the arable land in the nation is cultivated. The government has also created a development plan for Venezuela’s industry sectors, which includes establishment of steel, aluminum, bauxite and timber plants.
