Venezuela Industries

By | December 16, 2021

The oil industry, whose products make up 75% of the value of Venezuela’s exports and which has brought about a real revolution in the economy of the country since, in 1917, the first drilling.

The most important oil areas are two: that which includes the Maracaibo basin and the Coro region up to the mouth of the Tocuyo; and that which includes the region around the Gulf of Paria and a part of the Orinoco delta. The exploitation is generally carried out by English and Dutch or North American companies, the former controlled by the large Royal Dutch Shell trust, the latter by the no less large Standard Oil trust; however, there are also some Venezolan companies, including the Compañia Petrolia del Táchira, founded in 1878.

The most active wells are those around the Gulf of Maracaibo (Menegrande, La Rosa, El Mene, Lagunillas and Guanaco on the east side, La Paz and Concepción on the west, and Río de Oro and Tarra on the south).

The oil is refined partly in the Venetian refineries, in San Lorenzo, and partly in Willemstad, the capital of the Dutch island of Curaçao, and in Aruba (also a Dutch possession). Production has been rapidly increasing since 1917: from 119,000 barrels obtained in that year, it went to 425,000 barrels in 1919, to 1,482,000 in 1921, to 2,335,000 in 1922, to 4,059,000 in 1923, to 8,754. 000 in 1924, to 19,687,000 in 1925, to 37,226,000 in 1926, to 64,400,000 in 1927, to 108,098,000 in 1928, to 138,000,000 in 1929. After the year 1929, due to the difficult situation in where the world oil market found itself, and which forced several companies to fuel its extraction, production decreased; already in 1931 it was 116,136,000 barrels and in 1932 it was 115,300,000. A recovery is currently taking place. For Venezuela 1996, please check

The export naturally followed the development of production; in 1930 about 20,400,000 tons were exported. of oil; as a value, in 1933 oil represented 516.2 million bolívares out of 617.5 million of total exports.

40% of the production is absorbed by the United States through the port of Maracaibo, to which most of the Venezuelan oil flows.

Considerable production also gives other minerals, namely asphalt, gold, coal and magnesite. The first is abundant in the coastal area of ​​the Gulf of Paria, where the asphalting lake of Guanoco (800 hectares) is located. Production, which in 1919 was 46,000 tons, dropped to 29,000 in 1931. Gold is found mainly in Guiana, where numerous mines are in operation, especially important in the SW area. of Ciudad Bolívar (Guasipati, El Callao, Tumeremo). The production of 1827 kg. in 1930, it rose to 3400 in 1934. The Naricual one, brought to Guanta by rail, and that of Coro are exploited from the various coal fields. The pure magnesite is found in large deposits on Margarita Island. The production of copper has almost ceased, almost all of which came from the Aroa (Yaracuy) fields, known and exploited since the beginning of the century. XVII.

For fifteen years the Venetian government has been trying to give impetus to existing industries and to set up new ones, with the aim of gradually emancipating the country from foreign imports. To date, however, no industry has reached such a development and perfection as to be able to withstand competition from foreign products. Principal obstacles to the grandiose and modern development of industries are the shortage of capital, the shortage of technicians and skilled labor, the high cost of motive power and transport and the shortage of these. The most important of the Venetian industries is certainly the cotton mill (47,000 spindles in 1936), with offices in Valencia, Caracas, Puerto Cabello and Cumaná; it is estimated that 80% of internal needs are covered by national products, however not yet of very fine quality. The sugar factory is also important, feeding a small export stream of raw sugar and a stronger one of refined sugar; the most important refineries are located in Maracay, Bobures, Encontrados and La Ceiba. In the states of Aragua and Carabobo there are also distilleries, which draw from the juice of the sugar cane the raw material for the manufacture of brandy and rum, both consumed entirely in the country. The major tobacco factories are located in Caracas and Puerto Cabello. There are numerous tanneries and leather goods factories (Caracas, Valencia, La Guaira, Maracaibo).

It is estimated that Venezuela may have 3 million HP of water power: however the electricity industry is still in its infancy.

Venezuela Industries