Editing Economy of Venezuela (section)

=== Petroleum and other resources ===
{{see also|Energy policy of Venezuela}}
[[File:Oil Reserves Updated.png|thumb|A map of world [[oil reserves]] according to OPEC, 2013]]
[[File:Annual crude oil and lease condensate production in South American countries in 2010 through 2020 (51727722797).png|thumb|Oil production in Venezuela (red) fell markedly between 2015 and 2020]]

Venezuela has the world's largest proven oil reserves, totaling 302.81 billion barrels at the end of 2017.<ref>{{Cite web|url=https://www.opec.org/opec_web/en/data_graphs/330.htm|title=OPEC : OPEC Share of World Crude Oil Reserves|website=www.opec.org|access-date=2019-03-26}}</ref> The country is a major producer of [[petroleum]] products, which remain the keystone of the Venezuelan economy. The International Energy Agency shows how Venezuela's oil production has fallen in the last years, producing only {{convert|2300000|oilbbl}} daily, down from 3.5 million in 1998. However, the oil incomes will double its value in local currency with the recent currency devaluation.<ref>{{in lang|es}} [http://www.eluniversal.com/2010/01/11/eco_art_contribucion-petrole_1720725.shtml "Contribución petrolera se duplica por ajuste cambiario."] El Universal. 11 January 2010. Retrieved 3 September 2010.</ref> Venezuela has large [[energy subsidies]]. In 2015, the cost of [[petrol]] was just US$0.06 per gallon, costing 23% of government revenues.<ref>{{Cite web|url=https://www.cnbc.com/2015/02/23/global-gasoline-price-subsidies-evaporate.html|title=Global gasoline-price subsidies evaporate|first=John W.|last=Schoen|date=23 February 2015|website=www.cnbc.com}}</ref> In February 2016, the government finally decided to raise the price, but only to 6 [[Venezuelan bolívar|bolívar]] (about 60¢ at the official rate of exchange) per litre for premium and just 1 bolívar (10¢) for lower-grade petrol.<ref>{{cite news|title=Venezuela: Maduro anuncia una devaluación y un aumento de hasta el 6.000% en el precio de la gasolina|url=http://www.bbc.com/mundo/noticias/2016/02/160217_venezuela_precio_gasolina_az|agency=BBC|date=17 February 2016}}</ref><ref>{{cite news|title=Venezuela raises petrol price for first time in 20 years|url=https://www.bbc.com/news/business-35600921|agency=BBC|date=18 February 2016}}</ref>

A range of other natural resources, including [[iron ore]], [[coal]], [[bauxite]], [[gold]], [[nickel]] and [[diamond]]s, are in various stages of development and production. In April 2000, Venezuela's president decreed a new [[mining]] [[law]] and regulations were adopted to encourage greater private sector participation in mineral extraction. During Venezuela's economic crisis, the rate of gold excavated fell 64.1% between February 2013 and February 2014 and iron production dropped 49.8%.<ref name=ABCreserves>{{cite news|last=Blasco|first=Emili|title=Venezuela se queda sin suficientes divisas para pagar las importaciones|url=http://www.abc.es/internacional/20140423/abci-venezuela-divisas-importaciones-201404222046.html|access-date=24 April 2014|newspaper=ABC News (Spain)|date=23 April 2014}}</ref> In the production of [[gold]], until 2009 the country produced an annual average between 11 and 12 tons per year. After that, due to the political and economic problems, mining activity plummeted: in 2017 the country only extracted 0.48 ton.<ref>[https://www.ceicdata.com/en/indicator/venezuela/gold-production Gold production in Venezuela]</ref>

Venezuela mostly utilizes [[hydropower]] resources to supply power to the nation's industries, accounting for 57% of total consumption at the end of 2016.<ref>{{Cite web|url=https://www.globallegalinsights.com/practice-areas/energy-laws-and-regulations/venezuela|title=Venezuela {{!}} Energy 2018 |website=GLI – Global Legal Insights Venezuela {{!}} Energy 2018|language=en|access-date=2017-12-18}}</ref> However, persistent drought has severely reduced energy production from hydropower resources.<ref>{{Cite news|url=https://www.theguardian.com/news/2016/mar/30/weatherwatch-hambling-venezuela-hydroelectric-dam-guri-dry-reservoirs-colombia|title=Hydro power falters in persistent drought|last=Hambling|first=David|date=2016-03-30|work=The Guardian|access-date=2017-12-18|language=en|issn=0261-3077}}</ref> The national electricity law is designed to provide a legal framework and to encourage competition and new investment in the sector.{{citation needed|date=August 2015}} After a two-year delay, the government is proceeding with plans to privatize the various state-owned [[electricity]] systems under a different scheme than previously envisioned.{{citation needed|date=August 2015}}