There is currently a generation in America that thinks socialism is a good thing. Few of them have actually visited countries where socialism is in effect, but they are convinced it is a good thing. If you ask about poor living conditions in a socialist country, they will simply state that the country is not practicing true socialism and that America could do it right. Well, we now have a concrete example of what happens when capitalism takes over a socialistic country.<\/p>\n
On Friday, Just the News<\/a> reported:<\/p>\n Venezuela, as an oil-producing country, appears to be making its comeback as the Trump administration\u2019s efforts to reform the country\u2019s oil law come to fruition.\u00a0<\/strong><\/p>\n The South American country appeared to take another big step in that effort this week when acting President Delcy Rodriguez signed regulations<\/a> reforming Venezuela’s main oil law.\u00a0<\/strong><\/p>\n Under the new regulations, the country\u2019s national oil company, Petr\u00f3leos de Venezuela SA (PDVSA), effectively loses control of Venezuela\u2019s vast oil resources.\u00a0<\/strong><\/p>\n Under the former communist regime, the country\u2019s oil industry floundered. In May 2021, Venezuela was producing less than 600,000 barrels of oil a day, despite having the world\u2019s largest oil reserves. This past May, it was producing nearly\u00a01.2 million barrels<\/a> of oil per day.\u00a0<\/strong><\/p>\n Venezuela nationalized its oil industry in the 1970s. Then in 2007, former President Hugo Ch\u00e1vez forced foreign oil companies to surrender majority stakes to the state, which resulted in the departure of ExxonMobil and ConocoPhillips. Of the big players, only Chevron acquiesced to the communist leader\u2019s demands.<\/strong><\/p>\n The article concludes:<\/p>\n The improved regulatory environment in the South American country is enticing more interest from America\u2019s producers, but so is the global energy market in the wake of the war in Iran. The blockades of the Strait of Hormuz sent oil prices into triple digits, and though they dropped to pre-war levels following the signing of a temporary agreement, that agreement appears to be crumbling with renewed hostilities.\u00a0<\/strong><\/p>\n Even if peace does come between the U.S. and Iran, global interest in oil resources that aren\u2019t dependent on the Strait of Hormuz won\u2019t go away anytime soon. It\u2019s possible, though not certain, that Venezuela will become a major player in the world energy market, and U.S. companies appear likely to play a big role in that future.\u00a0<\/strong><\/p>\n Capitalism works.<\/p>\n","protected":false},"excerpt":{"rendered":" There is currently a generation in America that thinks socialism is a good thing. Few of them have actually visited countries where socialism is in effect, but they are convinced it is a good thing. If you ask about poor … Continue reading