Petroleum the mainstay of Venezuelan economy

The gold industry may be the next mineral sector to give Venezuela a boost, the South American country’s economy having been driven for many years by petroleum exports.

Mainly because of its oil and gas reserves, the country has enjoyed a positive balance of trade for decades. The U.S., Japan and Colombia have been the major buyers of its oil. On the import side, Venezuela’s major items have been machinery, transport equipment, chemicals and basic manufactures. The Spanish-speaking nation covers an area of 912,050 sq. km. Its greatest extent from its ocean shoreline southward to its border with Brazil is about 1,050 km; from east to west (Guyana to Colombia), it is about 1,285 km. (The Caribbean Sea washes the northern shores on the country, while the Atlantic Ocean sweeps the northeastern shores.)

Venezuela has three broad geographical regions:

– The Llanos (Plains) — low-lying grassland in the country’s centre, representing about a third of the country’s landmass;

– The Guiana Highlands — a sparsely inhabited area featuring a granite massif in the southeast, occupying about 40% of the landmass; and

– The northern coastal plains and mountains — The highest elevation in the Andes range is 5,007 metres.

Draining most of the Llanos and Guiana Highlands as it flows into the Atlantic is the Orinoco River. A tributary of the Orinoco hosts the highest waterfall (Angel Falls) in the world, at 979 metres.

The climate in the country varies with the elevation, but for the most part it is tropical; the rainfall is a better indicator of the seasonal changes than the temperature, which has a small annual range.

Agricultural land represents only about 4% of the total landmass. The country is a net importer of foods, its main cash crops being sugar cane, coffee and cacao.

Forest reserves cover most of Venezuela’s southern half, but the forestry industry has seen relatively little development. Also, the fisheries industry has not seen much development.

Venezuela’s petroleum reserves represent about 7% of world reserves, while the country’s natural gas reserves represent about 3% of global reserves. Other major minerals found in the country are iron and bauxite. Venezuela’s mineral reserve inventory also includes gold, diamonds, coal and salt. The country has a low population density and the population is relatively young; about 40% of the inhabitants are 15 years of age or younger. About 13% of the population lives in or around the capital city, Caracas. The global oil boom in the 1970s — Venezuela was a leader in the formation of the Organization of Petroleum Exporting Countries — gave a significant boost to the economy, but in the 1980s the gross national product declined when oil was in an a over-supply position.

The country has had a functioning democracy with an elected, civilian government since 1958. The literacy rate is reported to be 89% and rising. A border dispute with Guyana dates back to 1844. Venezuela, basing its argument on prior Spanish possession, claims the Essequibo River in central Guyana as its eastern border. Rulings over the years pertaining to the territory, comprising mainly tropical rain forest, have generally favored Guyana.

— From the “Encyclopedia Britannica.”