Sunday, August 17, 2025

OIL, STEEL, AND ALUMINIUM: HISTORICAL RETROSPECTIVE OF VENEZUELA’S BASIC INDUSTRIES




 


OIL:

 

Period 1940-1970

In 1970, together with international oil companies, Venezuela reached a historic peak of 3.7 million barrels per day, resulting from a sustained growth trend since 1940. This boom significantly contributed to improving living standards and positioning the country in terms of human rights.

 

Period 1970-1989

A policy change during the government of President Rafael Caldera in 1970 marked the end of the growth trend of production, leading to a decline until 1989:

 

Oil production in the country decreased from 3.7 million barrels per day in 1970 to less than 2 million barrels per day by 1984.

 

Production levels in the 1980s were lower than those observed during the 1950s.

 

During the 1970-1989 period, oil production fell while Venezuela’s population increased, causing a decrease in per capita benefits derived from oil rents.

 

Period 1989-1998

Sustained growth implemented by the government of President Carlos Andrés Pérez from 1989 until 1998.

Thanks to the Development Programme designed and implemented in 1989 by Dr. Miguel Rodríguez, then Minister of Planning, together with Andrés Sosa Pietri, president of Petróleos de Venezuela, it was possible to achieve the only sustained growth trend in oil production recorded by the Venezuelan state in its petroleum history. See graph for the 1989-1998 period.


 


Data Source: OPEC Annual Statistical Bulletin

 


Period 1999-2023

DECLINE IN PRODUCTION AND COLLAPSE OF THE OIL INDUSTRY

 

STEEL:

The Orinoco Steel Complex (SIDOR), founded in 1963, reached an annual production of 1,250,000 tons in 1971. Between 1975 and 1979, Plan IV expanded capacity to 4,800,000 tons. In 1996, SIDOR recorded its highest historical production of 3,100,000 tons, and after privatization, it reached 4,300,000 tons in 2007. Production later collapsed following re-nationalization.


La evolución de la producción

 

 

ALUMINIUM:

In 2005, CVG Bauxilum set a historic production record of 1,950,000 tons of alumina.

CVG Venalum maintained its installed capacity of 430,000 tons per year and internationally recognized efficiency until 2008, when power supply was suspended. Sales revenue between 1998 and 2008 reached 8 billion dollars.

 


Imagen que contiene persona, hombre, gente, frente

El contenido generado por IA puede ser incorrecto.

Venezuelan Aluminum Industry, CVG Venalum, still during times of operational, technical, and managerial excellence. Source: La Noticia, CVG Venalum, Year 2, No. 04, January-February 2003

 

 

Consulted Sources:

 

Historical Evolution of Oil Production in Venezuela

https://juanguzman88.blogspot.com/2025/02/historical-evolution-of-oil-production.html

 

The Collapse of Sidor, the Techint Steel Plant Nationalized in Venezuela

https://www.infobae.com/economia/2020/01/27/el-derrumbe-de-sidor-la-siderurgica-de-techint-estatizada-en-venezuela-paso-de-43-millones-de-toneladas-de-acero-por-ano-a-producir-nada/

 

Technological Evolution within the Training and Development Process at CVG Venalum

https://juanguzman88.blogspot.com/2023/10/technological-evolution-within-training.html

 

Japanese Banks Willing to Finance CVG Projects

https://www.voltairenet.org/article122748.html

 

 

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