Space Industry and Business News
OIL AND GAS
Oil-tainted lake a symptom, and symbol, of Venezuela's collapse
Oil-tainted lake a symptom, and symbol, of Venezuela's collapse
By Patrick FORT
Maracaibo, Venezuela (AFP) July 21, 2024

A putrid smell hangs over the black-stained shores of Lake Maracaibo in Venezuela, where an oil slick is emblematic of the steep decline in the country's once-enviable petroleum industry.

Here, much like elsewhere in what was once Latin America's richest country, economic hardship drives much of the discussion ahead of July 28 elections, in which President Nicolas Maduro will seek a third six-year term.

"We suffer. Fishing from the shore is no longer possible because of the oil," fisherman Yordi Vicuna, 34, told AFP, adding that catches have fallen tenfold.

He said nets must constantly be washed or replaced after being soiled by oil that leaks from decayed pipes which the government cannot afford to fix.

Much of Venezuela's economic collapse -- fueled partly by a sharp international drop in oil prices after 2014 -- has happened under the watch of Maduro, who has been in office since 2013.

Many Venezuelans -- including Vicuna -- blame US sanctions for the dire situation.

"The pipeline is damaged because of the (economic) blockade," the fisherman said, echoing the government's official line, as he and others shoveled oil-soaked sand from the lake shore.

"We ask the competent agencies, people from outside, to support the government in any way... to fix the pipelines," Vicuna added.

- Boom to bust -

More than a century ago, the hydrocarbon-rich Maracaibo Basin was the birthplace of a business that transformed Venezuela into one of the world's top 10 oil producers -- fueling a decades-long period of incredible prosperity.

The country, which has the world's largest proven oil reserves, was producing 3.5 million barrels of oil a day by 2008, with the United States as its main client.

But in just 12 years this dropped to fewer than half a million barrels following the nationalization of the industry and a crippling, months-long strike at state oil company PDVSA in protest against then-President Hugo Chavez.

Chavez sacked thousands of PDVSA staff and managers, who observers say were replaced mainly by non-expert loyalists.

As oil production dipped, Venezuela fell into an economic crisis marked by years of recession and hyperinflation that has seen an estimated seven million people -- almost a quarter of the population -- flee the country in just under a decade.

Most analysts blame the industry's rapid decline on corruption and inept management at PDVSA, worsened by the toughening of sanctions on Venezuela after Maduro's 2018 reelection, which was not recognized by dozens of countries.

- 'The lake is lost' -

A few oil pumps still operate on Lake Maracaibo's polluted shore, but dozens of machines stand idle.

The Puyuyo beach near the Bajo Grande refinery is black with oil. It was once a popular swim spot but most small hotels and bars here are now closed.

"People used to come here... Families came from all over to visit, eat fish and swim but now there are 30 centimeters (11.8 inches) of oil" on the bottom of the lake, said Guillermo Albeniz Cano.

The 64-year-old owns a beach cafe but has no clients. Instead, he barters rice and flour for the occasional fish or crab meat.

When AFP visited Puyuyo, only one table of the cafe was occupied -- by crabbers playing dominoes who said they would rather be working.

"Since there is a lot of oil in the lake, we could not go out today," said father-of-four Luis Angel Vega.

"Sometimes we don't eat for a whole day, the 26-year-old added.

His colleague Alvaro Villamil, 61, tried his luck nevertheless. On his boat "Carmen Rosa," he showed his catch of a few blue crabs he managed to get from the less-polluted center of the lake.

But it is not enough to make a living.

"It's hard... The lake is lost. There's a lot of oil," Villamil told AFP, his long-sleeved T-shirt stained with the stuff.

- 'For sale' -

Maracaibo was a flourishing city in the 20th century, with its colonial buildings, Art Deco theater and tramline.

Today, "for sale" signs on properties far outnumber election campaign posters, while tall grass and crumbling walls abound in the industrial zone.

Some 200 companies, including the German firm Siemens, once had a presence in the area. Today there are about 30.

Yet there are signs that Venezuela's oil fortunes may be looking up again.

Despite the renewal of sanctions after Maduro reneged on negotiated conditions for elections, Washington is allowing companies such as Chevron and Repsol to apply for individual licenses to keep operating in Venezuela.

And Oil Minister Pedro Tellechea said in May he was optimistic that Venezuelan oil production would reach a million barrels per day this year.

This will depend largely on what happens in next Sunday's vote, with widespread fear that Maduro will steal the election and unlock a new era of international pariahdom.

Related Links
All About Oil and Gas News at OilGasDaily.com

Subscribe Free To Our Daily Newsletters
Tweet

RELATED CONTENT
The following news reports may link to other Space Media Network websites.
OIL AND GAS
COP29 hosts urge fossil fuel majors to donate to climate fund
Paris (AFP) July 19, 2024
Azerbaijan said Friday it hopes to raise money from fossil fuel producers for green projects in developing countries as the petro-state prepares to host the world's most important climate summit. The proposal, announced in Baku by the hosts of November's UN COP29 climate summit, attracted immediate criticism from activists who slammed it as "greenwashing". The "climate finance action fund" aimed to attract an initial $1 billion through voluntary contributions from oil, gas and coal producers. ... read more

OIL AND GAS
Cloud and AI lift Google-parent quarterly profit

France quietly catches rivals in battle for data centre supremacy

China starts work on Afghan copper mine long stalled by war

New Hertz 2.0 building enhances space antenna testing at ESTEC

OIL AND GAS
Airbus Secures Major Contract for Bundeswehr's Advanced Military Satellite System

Airbus nets 2.1 bn euros satellite deal with German military

Gilat to support critical connectivity requirements for the US DOD

Frontier Technology Chosen for $1B Military Satellite Software Contract

OIL AND GAS
OIL AND GAS
NextNav Receives DOT Award to Enhance PNT Services as GPS Backup

Lebanon says Israeli GPS jamming confounding ground, air traffic

Green light for Galileo 2nd Generation satellite design

Europe's Largest Ground Segment Upgraded Without User Disruption

OIL AND GAS
Climate activists stage protests at European airports

Airbus Racer demonstrator surpasses speed milestone of 420 km/h

NOAA, United Airlines to measure greenhouse gases during domestic flights

UK moots carbon footprint details for all flights

OIL AND GAS
New Technique for Controllable Tuning and Instability Assessment in 2D Materials

DARPA Launches Initiative for Next-Gen US Microelectronics Manufacturing

Renesas unveils space-grade power management solution for AMD Versal AI Edge SoC

Taiwan's TSMC second-quarter net profit jumps on Gen AI demand

OIL AND GAS
China-based emissions of three potent climate-warming greenhouse gases spiked in past decade

Grain Boundaries' Weakening Impact on Planetary Mantles

Next-Gen Weather Satellite Completes Critical Environmental Tests

How melting icecaps impacts the rotation of Earth

OIL AND GAS
US to phase out federal purchase of single-use plastics

Spain cleans up after mystery substance closes three beaches

Leftover emeralds: the dream of Colombia's poor miners

Search underway after French-owned ship loses 44 containers off S.Africa

Subscribe Free To Our Daily Newsletters




The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us.