Oil sales

Just as it happened in Saudi Arabia, American oil companies started investing in Venezuela and in time developed the business in both countries. By the 1960’s Venezuela was the richest country in South America with a standard of living at 80% of Americas. They were producing about 4 million barrels per day until socialist governments took power. These new governments under Perez in 1976 nationalized the oil business and took ownership of the American companies’ assets. He was followed up by socialist Chavez and Maduro and the American engineers left the country and they were replaced by friends of the leadership. Oil production dropped to 600,000 barrels per day and the country fell into a depression with 500% inflation. China had loaned Venezuela billions of dollars and they were repaid with cheap oil, $20 per barrel under market price. Maduro was removed from office and a new agreement was reached where by the US would sell Venezuela oil on the open market and the profits would be used to help rebuild the oil industry. Some of the profits would go to the US.