lunes, 29 de julio de 2019

Reflection on the privatization of PDVSA


Opinions regularly appear in the Venezuelan media about the need to privatize the company Petróleos de Venezuela, PDVSA, as a salvation table to solve the country's serious problems; I would like to express the following opinions on the subject:
1. The true value of an oil or mining company is its reserves.
2. PDVSA is not the owner of the Venezuelan oil reserves that belong inalienably to the Venezuelan nation, based on the principle of the nation's ownership of the subsoil, which comes from the time of the Colony in the Laws of Indian and then ratified by the Liberator Simón Bolívar until the present.
3. In Venezuela it does not exist at present and it is very difficult that there will be sufficient political force in the future to change the principle that grants the inalienable property of the subsoil to the nation.
4. Consequently, privatizing PDVSA would in no way guarantee new members access to Venezuela's reserves and oil exploitation.
5. Venezuela could liquidate PDVSA and create a new company if necessary for a better operation of its energy activity.
6. Venezuela needs to recover its oil, petrochemical and gas industry and for this requires significant investments and technology.
7. To achieve the purpose of recovering its energy industry, Venezuela needs to partner with large global companies and that is the mechanism that must be established: the association for the joint exploitation of resources fairly for both Venezuela and transnational corporations and not the privatization of PDVSA that would in no way guarantee more benefits to the new partners.
8. With the exception of the United States, which now uses a highly harmful source to the environment such as fracking, the tendency to use less polluting sources grows in the rest of the world. The United States was forced to use the fracking technique due to the depletion of its conventional oil reserves. A complete study on the situation of natural resources and specifically on water and conventional oil reserves depletion in the world can be found in the book Running Out: How Global Shortages Change the Economic Pardigm in its 2005 and 2008 editions.
9. In its energy policy, Venezuela must take into account the global reality that tends to the increasing use of less polluting sources and to efficiently use all its potential today, duly developing petrochemicals and gas.
10. In summary, the privatization of PDVSA would not represent any advantage for international investors; what would represent an advantage for the investors is a fair partnership for specific exploitation projects.

Running Out: How Global Shortages Change the Economic Paradigm
  1. https://www.amazon.com/gp/product/0875864201/ref=dbs_a_def_rwt_bibl_vppi_i1

  1. https://www.amazon.com/gp/product/B01K904U3I/ref=dbs_a_def_rwt_bibl_vppi_i9
  2. Venezuela needs new and massive international investments in oil, gas and petrochemicals


                                                                   


       

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