Its oil reserves are bigger than Saudi Arabia's, but output has been declining steadily. Vast oil riches notwithstanding, Venezuela's budget deficit is spiralling out of control because of a bloated bureaucracy and heavy social spending, sapping investment into the energy sector.
For the country's oil industry, there is no ambiguity over Hugo Chavez's legacy.
"With Chavez and his charisma gone, the move towards market reforms could eventually begin with the opposition standing ready to take control," said Ole Hansen, the head of commodity strategy at Saxo Bank. With demand for oil still rising on strong economic growth in Asia, added flows from Venezuela's fields would help to keep the market in balance.
"Reforms and the reintroduction of foreign investment will not happen overnight, possibly not for a few years. But once it does, another source of increased supply will further help to alleviate some of the worries about future supply not keeping up with an increased demand, especially from emerging economies," said Mr Hansen.
After 14 years of the controversial president's rule, Venezuela's oilfields pump just 2.7 million barrels per day (bpd), 13 per cent less than when Chavez came to power in 1999. Since that time, proven reserves have tripled to 296.5 billion barrels - the world's largest - according to the BP Statistical Review.
And little change is likely in the foreseeable future.
"The death of president Chavez increases uncertainty over the political direction of Venezuela in the short term," said Oswald Clint, an energy analyst at Sanford C Bernstein. "However, we believe the most likely scenario is one where the current environment for international oil companies continues."
Oil production is under the auspices of the national oil company Petróleos de Venezuela (PDVSA), which holds a majority stake in every active field. The demands placed on the company by the treasury have increased over time, and oil now accounts for 96 per cent of the country's dollar earnings.
A US$233bn (Dh855.83bn) development of the bountiful Orinoco heavy oil belt fell behind schedule during Chavez's prolonged illness.
If Nicolas Maduro, the vice president and Chavez's chosen successor, wins an election that is set to be held within a month, social spending will continue to be prioritised over investment into the oil sector, says Carlos Bellorin, an energy analyst at IHS Global Insight. The PDVSA's inability to get crude production back on track may result in concessions to foreign oil companies being made.
"PDVSA may be forced to ease some terms in negotiations to obtain capital from its partners to start seven new projects in the Orinoco belt and increase production from strategic assets," said Mr Bellorin.
Even in the event that the opposition comes to power, Venezuela's oil policies are not likely to undergo radical change in the coming years.
"Gradualism will be the rule," said Mr Bellorin, who believes that the national oil company would be disentangled from the tight control of the ministry of petroleum and mining, and would give more autonomy to the joint ventures operating the fields.
Over time, Chavez's shadow will recede from the dilapidated oil sector, and more meaningful reforms could unlock Venezuela's vast potential.
fneuhof@thenational.ae
SPEC SHEET
Display: 10.9" Liquid Retina IPS, 2360 x 1640, 264ppi, wide colour, True Tone, Apple Pencil support
Chip: Apple M1, 8-core CPU, 8-core GPU, 16-core Neural Engine
Memory: 64/256GB storage; 8GB RAM
Main camera: 12MP wide, f/1.8, Smart HDR
Video: 4K @ 25/25/30/60fps, full HD @ 25/30/60fps, slo-mo @ 120/240fps
Front camera: 12MP ultra-wide, f/2.4, Smart HDR, Centre Stage; full HD @ 25/30/60fps
Audio: Stereo speakers
Biometrics: Touch ID
I/O: USB-C, smart connector (for folio/keyboard)
Battery: Up to 10 hours on Wi-Fi; up to 9 hours on cellular
Finish: Space grey, starlight, pink, purple, blue
Price: Wi-Fi – Dh2,499 (64GB) / Dh3,099 (256GB); cellular – Dh3,099 (64GB) / Dh3,699 (256GB)
Company%20Profile
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Takestep%0D%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%20March%202018%0D%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Mohamed%20Khashaba%2C%20Mohamed%20Abdallah%2C%20Mohamed%20Adel%20Wafiq%20and%20Ayman%20Taha%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Cairo%2C%20Egypt%0D%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20health%20technology%0D%3Cbr%3E%3Cstrong%3EEmployees%3A%3C%2Fstrong%3E%20%2011%20full%20time%20and%2022%20part%20time%0D%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%3C%2Fstrong%3E%20pre-Series%20A%3C%2Fp%3E%0A
COMPANY PROFILE
● Company: Bidzi
● Started: 2024
● Founders: Akshay Dosaj and Asif Rashid
● Based: Dubai, UAE
● Industry: M&A
● Funding size: Bootstrapped
● No of employees: Nine
Getting there
The flights
Flydubai operates up to seven flights a week to Helsinki. Return fares to Helsinki from Dubai start from Dh1,545 in Economy and Dh7,560 in Business Class.
The stay
Golden Crown Igloos in Levi offer stays from Dh1,215 per person per night for a superior igloo; www.leviniglut.net
Panorama Hotel in Levi is conveniently located at the top of Levi fell, a short walk from the gondola. Stays start from Dh292 per night based on two people sharing; www. golevi.fi/en/accommodation/hotel-levi-panorama
Arctic Treehouse Hotel in Rovaniemi offers stays from Dh1,379 per night based on two people sharing; www.arctictreehousehotel.com
Call of Duty: Black Ops 6
Developer: Treyarch, Raven Software
Publisher: Activision
Console: PlayStation 4 & 5, Windows, Xbox One & Series X/S
Rating: 3.5/5
Results
Stage 7:
1. Caleb Ewan (AUS) Lotto Soudal - 3:18:29
2. Sam Bennett (IRL) Deceuninck-QuickStep - same time
3. Phil Bauhaus (GER) Bahrain Victorious
4. Michael Morkov (DEN) Deceuninck-QuickStep
5. Cees Bol (NED) Team DSM
General Classification:
1. Tadej Pogacar (SLO) UAE Team Emirates - 24:00:28
2. Adam Yates (GBR) Ineos Grenadiers - 0:00:35
3. Joao Almeida (POR) Deceuninck-QuickStep - 0:01:02
4. Chris Harper (AUS) Jumbo-Visma - 0:01:42
5. Neilson Powless (USA) EF Education-Nippo - 0:01:45
Persuasion
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3ECarrie%20Cracknell%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3EDakota%20Johnson%2C%20Cosmo%20Jarvis%2C%20Richard%20E%20Grant%2C%20Henry%20Golding%20and%20Nikki%20Amuka-Bird%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%201.5%2F5%3C%2Fp%3E%0A
Joker: Folie a Deux
Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson
Director: Todd Phillips
Rating: 2/5
KILLING OF QASSEM SULEIMANI
The specs
Engine: 2.7-litre 4-cylinder Turbomax
Power: 310hp
Torque: 583Nm
Transmission: 8-speed automatic
Price: From Dh192,500
On sale: Now
SPECS
Engine: Two-litre four-cylinder turbo
Power: 235hp
Torque: 350Nm
Transmission: Nine-speed automatic
Price: From Dh167,500 ($45,000)
On sale: Now
The specs
Engine: 3.9-litre twin-turbo V8
Power: 620hp from 5,750-7,500rpm
Torque: 760Nm from 3,000-5,750rpm
Transmission: Eight-speed dual-clutch auto
On sale: Now
Price: From Dh1.05 million ($286,000)