Venezuela Oil & Gas Industry a Look up into Oil & Gas Industrial History, Regimes, Problems and Opinions concerning Current State

Abstract

The complexity inherent in operations in the oil and gas industry, from complicated upstream, midstream and downstream processes such as exploratory magnetic, gravimetric and seismic surveying for hydrocarbon-bearing rock formations, exploratory drilling of wells, appraisal of prospective fields, development, production, storage, transportation, refining, marketing and distribution of the hydrocarbons, followed by subsequent decommissioning and rehabilitation of the production installations over a lengthy period of time requires the devotion of a large influx of specialized human and capital resources. Venezuela as Gas and oil producing country is characterized as uniquely capital intensive as a result of the significant monetary support and economic activity required as investments to make endeavors technically and commercially successful. The importance of foreign investments in facilitating development in the hydrocarbon industry in its state, underscores the significance of the establishment of a stable, transparent and efficient legal regime for promoting and protecting these investments. This paper will analyze the history of Venezuela exploration, development and production of oil and gas including analysis of legal regime through an examination of the interplay between the different elements of national legislation, contractual agreements and international treaties and unique regimes compared to other countries. Finally ending up by giving opinion to the current 2019 situation and consequences including recommendation and new necessary adaptations.