2 min
Power, Politics, and Petroleum: The Story of Venezuela
After gaining independence from Spain in the early 19th century under the leadership of Simón Bolívar, the country spent much of the next century marked by political instability and military rule. Everything changed in the early 20th century with the discovery of vast oil reserves, which rapidly transformed Venezuela into one of the world’s leading petroleum exporters and shifted power toward a centralized state funded almost entirely by oil revenue. By the mid-20th century, oil had become both Venezuela’s greatest asset and its greatest vulnerability. Democratic governments that emerged after 1958 used oil income to expand social programs and infrastructure, but also built an economy dangerously dependent on a single commodity. When oil prices fell in the 1980s and 1990s, economic inequality and public frustration surged, creating the conditions that brought Hugo Chávez to power in 1999. Chávez reoriented the political system around a state-controlled oil sector, using petroleum revenues to fund social initiatives while consolidating political authority and weakening independent institutions. Under Chávez and his successor Nicolás Maduro, oil remained the backbone of the state—but declining production, corruption, and mismanagement hollowed out the industry itself. As oil revenues collapsed, so did public services, democratic norms, and economic stability. Venezuela’s history illustrates a central paradox: immense natural wealth paired with fragile governance. Control of oil has repeatedly shaped political power, domestic policy, and Venezuela’s relationship with the world—making energy inseparable from the country’s political story. Journalists covering Venezuela, Latin American politics, energy markets, or resource-driven economies are encouraged to connect with experts who can provide historical context, explain the role of oil in shaping political outcomes, and assess how Venezuela’s past continues to influence its uncertain future. Our experts can help! Connect with more experts here: www.expertfile.com
