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Political Chaos Leads to PDVSA Decay

In this issue, we invited Humberto Jaimes for an exclusive interview on PDVSA decay. Professor Humberto Jaimes is currently a research fellow at the Centre for Communication Studies at the Catholic University of Andres Belo. His research interests are in communication, culture and society. His most recent studies include The Pragmatism of Science and Technology, “The Black Box”and Freedom of Information.

Humberto Jaimes:Political Chaos Leads to PDVSA Decay

Once upon a time, Venezuelan oil company PDVSA was the world’s leading oil company. But now, it’s going down the drain. What causes it to go from boom to bust? Will the investment and cooperation of Chinese Enterprises turn the tide? In response to these questions, we conducted an exclusive interview with Professor Humberto Jaimes to learn his views on the development of the PDVSA.

PDVSA's current crisis is not due to United States sanctions. The drop in oil production, finances and the general operation of this company is mainly due to the terrible administration and management of the governments of the so-called Bolivarian Revolution. The US sanctions have only partially and temporarily affected a small part of the oil business, starting in 2019 or 2020. You need to better investigate these issues. There is extensive information on the Internet about PDVSA's problems. I repeat: the United States sanctions have not caused the drop in production or the current PDVSA crisis.

Regarding Chinese companies, the Venezuelan accepts the participation of transnational companies that bring benefits to the industry and the country. Venezuelans in general just want the oil industry to go back to what it was before. It must be remembered that Venezuela was the first oil exporter in the world, between 1928 and 1970. It also became the second largest producer in the world. The Bolivarian Revolution destroyed the Venezuelan oil industry by nationalizing many of its operations and expelling transnational companies from the United States and other countries that had operated in the country for several decades. The true cause of the destruction of the oil industry in Venezuela is not the United States, it is the government that imposed the Bolivarian Revolution.

A company like Petrochina can be welcome as long as it does its job well and does not get into political trouble. China is a powerful country with a fast growing economy. It is everywhere, it is always a partner to be reckoned with. What we want is for the transnationals to do their job well and give benefits to the country. Petrochina has already been working in Venezuela for many years.

You should do more research on the topics of the questions you ask. China has had close relations with Venezuela for about 15 years, both commercially and in other areas. I am not aware of anything about Montmagastre Ventures Ltd. or PDVSA's current operations.

Interviewer: Xue Zhiyu

Interview date: December 29, 2021

Organizer: Li Yixiang



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