Rethinking Venezuela’s Relationship to Oil: A Proposal to Reform Petróleos de Venezuela, S.A (PDVSA)
Graduation Year
2016
Date of Submission
4-2016
Document Type
Campus Only Senior Thesis
Degree Name
Bachelor of Arts
Department
Environment, Economics, and Politics (EEP)
Reader 1
William Ascher
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Rights Information
© 2016 Erin R Larsen
Abstract
This thesis uses the historical relationship between Venezuela and petroleum to identify areas of resource rent waste mismanagement in the Venezuelan oil sector. Low oil prices are also more strongly bringing PDVSA’s mismanagement, corruption, and politicized agenda to light because of the high social cost of these inefficiencies. This thesis also explores industry-level best practices and applies them to the distinct case of PDVSA, with the objective of aiding Venezuela in navigating its way back to solid economic ground. The current economic and humanitarian crises in Venezuela elevate the need for conversations centered on reform options. This analysis concludes that the preferred policy option should be partial privatization because it is the most politically palatable option that also brings the most solvency to PDVSA’s inefficiencies. Partial privatization will allow Venezuela to reinsert itself into international financial markets and will open the country to desperately needed foreign investments. The elimination of market-distorting subsidies, the creation of a sovereign wealth fund, and the development of a regulatory structure that promotes transparency, accountability, and participation will also be critical.
Recommended Citation
Larsen, Erin, "Rethinking Venezuela’s Relationship to Oil: A Proposal to Reform Petróleos de Venezuela, S.A (PDVSA)" (2016). CMC Senior Theses. 1425.
https://scholarship.claremont.edu/cmc_theses/1425
This thesis is restricted to the Claremont Colleges current faculty, students, and staff.