The Prague Post - Oil-tainted lake a symptom, and symbol, of Venezuela's collapse

EUR -
AED 4.250678
AFN 72.918041
ALL 96.067465
AMD 436.932685
ANG 2.071904
AOA 1061.367148
ARS 1614.573682
AUD 1.634575
AWG 2.086276
AZN 1.972142
BAM 1.972698
BBD 2.332168
BDT 142.080747
BGN 1.978413
BHD 0.436949
BIF 3437.580732
BMD 1.157435
BND 1.485596
BOB 8.001925
BRL 6.042616
BSD 1.157939
BTN 107.880297
BWP 15.801103
BYN 3.580572
BYR 22685.717965
BZD 2.32886
CAD 1.590258
CDF 2633.163673
CHF 0.913169
CLF 0.026762
CLP 1056.726175
CNY 7.98682
CNH 7.967438
COP 4274.220751
CRC 541.77124
CUC 1.157435
CUP 30.672017
CVE 112.32935
CZK 24.46157
DJF 205.69948
DKK 7.470818
DOP 68.086114
DZD 153.068157
EGP 60.468898
ERN 17.361519
ETB 181.942975
FJD 2.556252
FKP 0.868855
GBP 0.862243
GEL 3.142482
GGP 0.868855
GHS 12.612219
GIP 0.868855
GMD 85.650189
GNF 10159.345308
GTQ 8.857761
GYD 242.257739
HKD 9.066706
HNL 30.752706
HRK 7.534086
HTG 151.887632
HUF 390.323942
IDR 19551.674454
ILS 3.619692
IMP 0.868855
INR 107.73737
IQD 1516.239313
IRR 1522171.1655
ISK 143.799756
JEP 0.868855
JMD 181.912765
JOD 0.820653
JPY 182.822601
KES 150.005481
KGS 101.215228
KHR 4641.312752
KMF 495.381662
KPW 1041.677217
KRW 1723.362105
KWD 0.354453
KYD 0.965012
KZT 556.866583
LAK 24855.907577
LBP 103648.268002
LKR 360.942102
LRD 212.274287
LSL 19.479641
LTL 3.417604
LVL 0.70012
LYD 7.384117
MAD 10.832141
MDL 20.292792
MGA 4820.714971
MKD 61.634594
MMK 2430.311069
MNT 4150.377902
MOP 9.342916
MRU 46.424425
MUR 53.832532
MVR 17.88262
MWK 2010.463866
MXN 20.538231
MYR 4.559163
MZN 73.961088
NAD 19.479093
NGN 1570.409946
NIO 42.500812
NOK 10.997709
NPR 172.603009
NZD 1.971059
OMR 0.445035
PAB 1.157979
PEN 3.99836
PGK 4.979257
PHP 69.211938
PKR 323.097975
PLN 4.267571
PYG 7524.225019
QAR 4.218386
RON 5.093054
RSD 117.434432
RUB 99.715141
RWF 1688.697067
SAR 4.345484
SBD 9.315708
SCR 16.728436
SDG 695.617571
SEK 10.760999
SGD 1.479253
SHP 0.868376
SLE 28.53087
SLL 24270.837165
SOS 661.476645
SRD 43.40615
STD 23956.559163
STN 24.884844
SVC 10.132098
SYP 127.929815
SZL 19.479951
THB 37.605283
TJS 11.087547
TMT 4.051021
TND 3.369582
TOP 2.786824
TRY 51.283377
TTD 7.848604
TWD 36.825979
TZS 3006.437007
UAH 50.920909
UGX 4376.679727
USD 1.157435
UYU 46.903191
UZS 14114.91435
VES 526.268876
VND 30428.955372
VUV 138.207434
WST 3.162366
XAF 661.659074
XAG 0.015864
XAU 0.000249
XCD 3.128025
XCG 2.086894
XDR 0.822888
XOF 661.473924
XPF 119.331742
YER 276.106212
ZAR 19.366681
ZMK 10418.297556
ZMW 22.667344
ZWL 372.693466
  • CMSD

    0.0100

    22.9

    +0.04%

  • NGG

    -1.8700

    85.53

    -2.19%

  • RIO

    -2.0700

    85.65

    -2.42%

  • BCC

    -1.9800

    69.86

    -2.83%

  • GSK

    0.3100

    52.37

    +0.59%

  • JRI

    -0.1630

    12.16

    -1.34%

  • AZN

    0.5100

    188.93

    +0.27%

  • CMSC

    0.0200

    22.85

    +0.09%

  • BTI

    0.6300

    58.72

    +1.07%

  • BCE

    -0.0200

    25.73

    -0.08%

  • RBGPF

    -13.5000

    69

    -19.57%

  • VOD

    0.0500

    14.42

    +0.35%

  • RYCEF

    -0.5900

    16.01

    -3.69%

  • BP

    1.2500

    45.86

    +2.73%

  • RELX

    -0.0400

    33.82

    -0.12%

Oil-tainted lake a symptom, and symbol, of Venezuela's collapse
Oil-tainted lake a symptom, and symbol, of Venezuela's collapse / Photo: Federico PARRA - AFP

Oil-tainted lake a symptom, and symbol, of Venezuela's collapse

A putrid smell hangs over the black-stained shores of Lake Maracaibo in Venezuela, where an oil slick is emblematic of the steep decline in the country's once-enviable petroleum industry.

Text size:

Here, much like elsewhere in what was once Latin America's richest country, economic hardship drives much of the discussion ahead of July 28 elections, in which President Nicolas Maduro will seek a third six-year term.

"We suffer. Fishing from the shore is no longer possible because of the oil," fisherman Yordi Vicuna, 34, told AFP, adding that catches have fallen tenfold.

He said nets must constantly be washed or replaced after being soiled by oil that leaks from decayed pipes which the government cannot afford to fix.

Much of Venezuela's economic collapse -- fueled partly by a sharp international drop in oil prices after 2014 -- has happened under the watch of Maduro, who has been in office since 2013.

Many Venezuelans -- including Vicuna -- blame US sanctions for the dire situation.

"The pipeline is damaged because of the (economic) blockade," the fisherman said, echoing the government's official line, as he and others shoveled oil-soaked sand from the lake shore.

"We ask the competent agencies, people from outside, to support the government in any way... to fix the pipelines," Vicuna added.

- Boom to bust -

More than a century ago, the hydrocarbon-rich Maracaibo Basin was the birthplace of a business that transformed Venezuela into one of the world's top 10 oil producers -- fueling a decades-long period of incredible prosperity.

The country, which has the world's largest proven oil reserves, was producing 3.5 million barrels of oil a day by 2008, with the United States as its main client.

But in just 12 years this dropped to fewer than half a million barrels following the nationalization of the industry and a crippling, months-long strike at state oil company PDVSA in protest against then-President Hugo Chavez.

Chavez sacked thousands of PDVSA staff and managers, who observers say were replaced mainly by non-expert loyalists.

As oil production dipped, Venezuela fell into an economic crisis marked by years of recession and hyperinflation that has seen an estimated seven million people -- almost a quarter of the population -- flee the country in just under a decade.

Most analysts blame the industry's rapid decline on corruption and inept management at PDVSA, worsened by the toughening of sanctions on Venezuela after Maduro's 2018 reelection, which was not recognized by dozens of countries.

- 'The lake is lost' -

A few oil pumps still operate on Lake Maracaibo's polluted shore, but dozens of machines stand idle.

The Puyuyo beach near the Bajo Grande refinery is black with oil. It was once a popular swim spot but most small hotels and bars here are now closed.

"People used to come here... Families came from all over to visit, eat fish and swim but now there are 30 centimeters (11.8 inches) of oil" on the bottom of the lake, said Guillermo Albeniz Cano.

The 64-year-old owns a beach cafe but has no clients. Instead, he barters rice and flour for the occasional fish or crab meat.

When AFP visited Puyuyo, only one table of the cafe was occupied -- by crabbers playing dominoes who said they would rather be working.

"Since there is a lot of oil in the lake, we could not go out today," said father-of-four Luis Angel Vega.

"Sometimes we don't eat for a whole day, the 26-year-old added.

His colleague Alvaro Villamil, 61, tried his luck nevertheless. On his boat "Carmen Rosa," he showed his catch of a few blue crabs he managed to get from the less-polluted center of the lake.

But it is not enough to make a living.

"It's hard... The lake is lost. There's a lot of oil," Villamil told AFP, his long-sleeved T-shirt stained with the stuff.

- 'For sale' -

Maracaibo was a flourishing city in the 20th century, with its colonial buildings, Art Deco theater and tramline.

Today, "for sale" signs on properties far outnumber election campaign posters, while tall grass and crumbling walls abound in the industrial zone.

Some 200 companies, including the German firm Siemens, once had a presence in the area. Today there are about 30.

Yet there are signs that Venezuela's oil fortunes may be looking up again.

Despite the renewal of sanctions after Maduro reneged on negotiated conditions for elections, Washington is allowing companies such as Chevron and Repsol to apply for individual licenses to keep operating in Venezuela.

And Oil Minister Pedro Tellechea said in May he was optimistic that Venezuelan oil production would reach a million barrels per day this year.

This will depend largely on what happens in next Sunday's vote, with widespread fear that Maduro will steal the election and unlock a new era of international pariahdom.

Q.Pilar--TPP