Venezuela

C

Mining

Petroleum, located in the Maracaibo Basin and in the eastern part of the country, dominates the Venezuelan economy. Crude and refined oil are the main source of government revenue and account for about one-third of the GDP. In 2004 Venezuela produced almost 1 billion barrels. Much of its oil is exported to the Netherlands Antilles for refining. Venezuela is a founding member of the Organization of Petroleum Exporting Countries (OPEC).

The Venezuelan government nationalized the petroleum industry in 1976, although private investment and foreign participation has been permitted since 1992. In 2006 the country had petroleum reserves estimated at 80 billion barrels.

Venezuela also is a major producer of natural gas; output in 2003 was 29.7 billion cubic meters (1.05 trillion cubic feet). Venezuela has tapped its vast reserves of bitumen to produce liquid coal, an emulsion of bitumen and water principally for use in power plants.

Other minerals commercially exploited in Venezuela include iron ore, bauxite, diamonds, gold, silver, platinum, coal, salt, copper, tin, asbestos, phosphates, titanium, and mica. In 2000 the country adopted new mining regulations intended to encourage greater private-sector and foreign investment in the mining sector. But growth failed to follow, largely because of labor unrest.

---

---

D

Manufacturing

The government of Venezuela has given high priority to the development of heavy industry since the 1960s. It established a significant steel industry and began the production of aluminum and petrochemicals, especially nitrogen-based fertilizers. In the late 1970s, a significant portion of the country’s oil revenue was invested in these state-owned industries. Ciudad Guayana, a city founded in an area rich in natural resources, became a major industrial center. But petroleum revenues dropped in the 1980s, as did investment in industry. By the late 1990s, the manufacturing sector was contracting, smaller firms shut down, and jobs were lost. Political instability in the early 2000s added to the problems of the manufacturing sector.

The leading manufactured goods of Venezuela include refined petroleum and petroleum products, steel, aluminum, fertilizer, cement, tires, motor vehicles, processed food, beverages, clothing, and wood items.

E

Tourism

Venezuela has a number of tourist attractions, including its long Caribbean coastline, the Andes Mountains, and the world’s highest waterfall (Angel Falls). However, its tourism industry remains largely undeveloped. Most of the country’s tourists visit the beaches on Margarita Island. More adventurous visitors seek out the wildlife and natural beauty of the Orinoco Delta and the interior highlands and tropical rainforests.

F

Energy

In 2003, 68 percent of Venezuela’s electricity was produced in hydroelectric facilities, particularly at the Guri Dam, a major installation on the Caroní River. Venezuela generated 87 billion kilowatt-hours of electricity in 2003.

G

Currency and Banking

The basic unit of currency is the bolivar, consisting of 100 centimos (2,090 bolivars equal U.S.$1; 2005 average). The Banco Central de Venezuela, founded in 1940, is the government banking agent, the sole bank of issue, and the clearinghouse for commercial banks. The country’s principal stock exchange is in Caracas.

	More from Encarta
	•  Presidential Myths Quiz •  Coffee break: Recharge your brain