What kind of business does PDVSA do in Venezuela?

Petróleos de Venezuela, S.A. ( PDVSA, Spanish pronunciation: [peðeˈβesa]) (English: Petroleum of Venezuela) is the Venezuelan state-owned oil and natural gas company. It has activities in exploration, production, refining and exporting oil as well as exploration and production of natural gas.

Why did PDVSA lose its research and development arm?

Intevep, the research and development arm of PDVSA, reportedly lost 80% of its workers, severely damaging PDVSA’s ability to innovate and compete in the global petroleum market. PDVSA saw stagnant growth in the following era which was defined by a boom in oil prices.

What was the problem with the oil company PDVSA?

With PDVSA focusing on political projects instead of oil production, mechanical and technical statuses deteriorated while employee expertise was removed following thousands of politically motivated firings. Incompetence within the company has led to serious inefficiencies and accidents as well as endemic corruption.

What does PDVSA do with the money it makes?

PDVSA continues to hire only supporters of the president, and PDVSA revenue is used to fund political projects.

Petróleos de Venezuela, S.A. (PDVSA, Spanish pronunciation: [peðeˈβesa]) (Petroleum of Venezuela) is the Venezuelan state-owned oil and natural gas company. It has activities in exploration, production, refining and exporting oil, as well as exploration and production of natural gas.

How much money does PDVSA have in reserves?

PDVSA faces $10 bil. in interest and principal payments this year, but reports estimate that PDVSA only has $2 bil. in cash to service its debt obligations. In principle, the government could come to the rescue. But, its stated reserves have dwindled to below $10.5 bil.

When did PDVSA’s oil output start to decline?

With that, PDVSA’s oil output started a downward slide (see the chart below). That slide became a plunge after the coup attempt of April 2002. It was then that Chavez purged PDVSA of its professionals en masse and replaced them with “reliable” hands – those who worshiped at Chavez’s altar.

How to determine if PDVSA’s output drop is deplorable?

To determine whether PDVSA’s output drop is deplorable or not, we must look at the company’s proven reserves and the rate at which they are depleted.