Uh, no. First, Venezuela's oil production is dropping, due to the exodus of skilled workers and the failure to reinvest in oil infrastructure. The consequence of this is that they aren't going to be able to make up the shortfall via oil revenues.
Originally Posted by Novaheart
Venezuela’s annual oil production has declined since Mr. Chávez took office in 1999 by roughly a quarter, and oil exports have dropped by nearly a half, a major economic threat to a country that depends on oil for 95 percent of its exports and 45 percent of its federal budget
“Venezuela’s clout on OPEC and on world oil prices has been greatly diminished because of its inability to exploit its enormous resources,” said Michael Lynch, president of Strategic Energy and Economic Research, a consultancy. “In the 1990s, their production was booming and they could thumb their nose at Saudi Arabia and get away with it, but now they have become OPEC’s poor cousin.”
In a fundamental geopolitical turn, Venezuela now relies far more on the United States than the United States relies on Venezuela.
Venezuela depends on the United States to buy 40 percent of its exports because Gulf of Mexico refineries were designed to process low-quality Venezuelan and Mexican crudes that most refineries around the world cannot easily handle. But in recent years, the United States has been replacing its imports of Latin American crudes with oil from Canadian oil sands
fields, which is similarly heavy.
|The numbers are particularly damning.
|Oil Production Venezuela -
from 1965 and forecast to 2015 - note steep decline since 1997 shows no signs of slowing despite higher oil prices. We expect Venezuela oil production to continue to decline - a massive increase in investment is required to reverse this decline, something we believe is unlikely in the current global economic climate.
These crackdowns are the result of desperation. Venezuela's economy is tanking, and Maduro doesn't know how to fix it, so he's scapegoating everyone that he can find and destroying businesses in order to throw cheap consumer goods to the mob. Think of it as Obamacare as applied to the entire Venezuelan economy.