Venezuela has dropped its oil production by half. But this isn’t a win for green technology or environmentalism. It’s a failing of state socialism.
After decades of a nationalized oil industry, the country with the world's largest oil reserves is going to be importing one-third of its daily domestic oil usage...
Venezuela has spent decades scaring off foreign investment and jobs in their oilpatch through repeated asset seizures and court battles. This is has spurred a marked decline in all private sector employment- only about 27% of Venezuelans have a private sector job.
Venezuela has run out of other people’s money. They don’t have enough capital to get their oil out of the ground and off to market for sale. To remedy this, Venezuela is importing about 200 thousands barrels of oil per day just to meet their domestic demands.
But this short-term fix won't last either, because, well, they have no money and they’re running out of credit, too. Venezuela is trying to negotiate away some of their debt owed to Russia so they can stave off the inevitable full collapse of their economy.
But this is what happens when business hating, economically illiterate socialists end up in charge of oil economies. Just look at Alberta. While Alberta may not be nationalizing the oil companies (quite yet), we are doing equally crazy socialist things like implementing carbon taxes, emissions caps, tax hikes and royalty reviews.
All these things serve the same purpose as seizing assets and nationalizing businesses. It scares investment dollars away, sometimes forever. Now the most oil-rich province in the country, once the crown jewel of Confederation, has a worse credit rating than Quebec and we can't pay our day to day bills either.
Rachel Notley is just like every other socialist.
She thinks she’ll be the one to get socialism right this time -without realizing that everyone who has tried socialism has done it right. The problem is socialism is wrong.