Challenge of Venezuelan oil. [Events leading to nationalization]
The article begins with a reprint of a Sept. 24, 1974 letter from President Carlos Andres Perez of Venezuela to President Ford citing, among other things, that in the case of Venezuela ''petroleum prices showed a steady decline for many years, while our country was obliged to purchase goods from the United States at ever-higher prices, which, day after day, restricted even further the possibilities of development and well-being for Venezuelans. The establishment of the organization of Petroleum Exporting Countries (OPEC) was a direct consequence of the developed countries' use of a policy of outrageously low prices for our raw materials as a weapon of economic oppression.'' The author, Mr. Gall, states ''it is one of the many ironies of the present oil panic that OPEC might never have come into being if the United States had protected Venezuela from the economic hardships resulting from the oil import quotas imposed by the Eisenhower Administration in 1959 to protect domestic producers and the oil majors against the flood of low-cost Middle East crude then glutting the world market.'' Mr. Gall then goes on to review the political events in Venezuela responsible for both their leading role in the formation of OPEC and their expected decision to nationalize their oil industry. (LMT) (EAPA editor's note: although Venezuela has subsequently nationalized their oil industry, this article was felt worthy of citing as background information.)
- Research Organization:
- Carnegie Endowment for International Peace
- OSTI ID:
- 7353605
- Journal Information:
- Foreign Policy; (United States), Journal Name: Foreign Policy; (United States) Vol. 18; ISSN FRPLA
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
021000 -- Petroleum-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
294002* -- Energy Planning & Policy-- Petroleum
FOREIGN POLICY
GOVERNMENT POLICIES
INDUSTRY
INTERNATIONAL ORGANIZATIONS
NORTH AMERICA
OPEC
PETROLEUM INDUSTRY
SOCIO-ECONOMIC FACTORS
SOUTH AMERICA
USA
VENEZUELA