I am always looking at obscure sources of information to know things that others do not know. I found an obscure British Petroleum report out of Africa announcing that Venezuela now has proven oil reserves of 295 billion barrels. This surpasses the proven oil reserves of Saudi Arabia at 265 billion barrels.
I later started to dig into the FT of London for today and came upon a banner headline about the high crime rate in Venezuela that affects every aspect of life. It was even putting President Chavez’s reelection at risk.
I thought back to something we had heard from one of my wife’s best friends. She is a doctor in Argentina. She went to a major medical conference in Caracas, Venezuela a couple of years ago. Anytime she left her hotel she had two armed body guards with her. When they drove her to the conference where she was a guest speaker, the body giuards had their guns drawn as they escorted her. They were very concerned about kidnappers.
How can one keep oil production up in these circumstances?