Socialist inept at running the oil business in Venzuela

NY Times:

Venezuela Crises Grow as Oil Industry Falls Into Disarray

Oil accounts for half the government’s revenues, but profits have evaporated amid a drop in global prices, forcing Venezuela to seek help from a nemesis: the United States.
Their problem goes well beyond the oil markets.  They spent money that should have gone to maintenance on vote buying schemes.  As the infrastructure fell into disrepair they could not afford to fix it.  They also had runoff those with an expertise in managing these assets when they nationalized the companies.  Meanwhile, the Americans developed new ways to extract oil and gas and do it cheaper than OPEC.  Now Venezuela is using light US crude from shale fields to dilute its heavy crude to make it marketable.


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