The Importance Of Oil In Venezuela’S Economy

The importance of oil in Venezuela’s economy

"Oil is an essential product for many industries, and is of vital importance for the maintenance of the same industrialized civilization, so it is considered a critical industry in most nations" (Petroleum Industry, 2020). In Venezuela, the oil industry plays a central role due to the high dependence of its export and (income), without the moments, a different or at least with some importance of profits for the country. It seeks this essay to highlight, the importance of oil as a fundamental element for the development and development of the country, even when in recent years, it under an oil crisis.

The importance of oil in Venezuela is evidenced in the dependence of the economy in the income from this hydrocarbon, being committed by the decline of the price of the oil barrel of 140.73 $ in 2003 to $ 43.04 in July 2020(OPEC oil price per barrel, 2020). The easy wealth that oil means to the country, made income channeling basically in that sector, disregarding other productive areas such as agricultural, industrial and technological, which could mean a parallel income, in addition to relying on it to cover its international commitmentsand distribute them in the improvement of areas such as education, technology, industries, to name a few, that improve the quality of life of the Venezuelan.

We could ask, can the country develop without oil? It is impossible, the Venezuelan crude constitutes the necessary source of energy for its development.

Its derivatives guarantee productivity, since it depends on them for the operation of machinery, industries, means of transport, product development, etc., necessary for economic progress and benefit of society. "In a nutshell, better energy sources increase productivity (…) Energy helps lift nations of poverty, while not guaranteeing their supply condemns them to collapse" (Bembirre, 2011).

The previously exposed ideas are supported by garnica (S.f), who expresses that economically, oil in the past, present and surely for the future, represents an invariable element, of which it is not possible to do without. We cannot ignore, that in recent years, oil demand, and therefore its price, has fallen notoriously in international markets and this, although it has had consequences in the national economy, remains the greatest income in foreign exchange and in thefiscal.

On the other hand, oil, from its first exploitation, is essential in the development of education, by allowing the general population, accessing the educational system, which was previously exclusion and limited to only few studies centers. Upon receiving the income of the oil income, sufficient resources were arranged for the creation of schools and higher studies nuclei in an inclusive way, which is why the education system cannot subsist without them. These funds guarantee the right to free education and the maintenance of educational infrastructure, to which, Dávila (S.f) affirms that, "being the State the perceiver of the new source of wealth (…), education ceases to be" instruction "to become technical and scientific training".

It is necessary to conclude that, without a doubt, oil, as a support of the national economic system, its presence as a source of energy of the country and in the educational development, reaffirm the important position that it occupies as a primordial contributor to its development. All efforts aimed at improving this resource and its processing, will be few, compared to the immense benefits it contributes and that they have done and, hopefully they will do, from Venezuela a prosperous country, as was an example in Latin America.