The Success of Socialism: Venezuela, with world’s largest proven petroleum reserves, is about to run out of gasoline!

Advierten que Venezuela sólo tiene gasolina para un día

El secretario de profesionales y técnicos de la Federación de Trabajadores Petroleros, Iván Freites, informó que la escasez se debe a la merma en la refinación.

Venezuela, país productor de petróleo, atraviesa una nueva crisis por la falta de gasolina en las estaciones de servicio. Desde hace una semana las largas filas de vehículos forman parte de la cotidianidad, debido a la poca oferta del producto.

Hay más en el artículo referenciado.

The secretary of professionals and technicians of the Federation of Oil Workers, Ivan Freites, reported taht the country has only one day’s supply of gasoline on hand, and just 2½ days supply of diesel fuel. He also noted that ships that have to enter the refineries have been paralyzed since June due to lack of freight payments.

Parliament’s Energy and Petroleum Commission Deputy Luis Aquiles Moreno said that refineries are working at only 30% of their capacity.

Petroleum is Venezuela’s only important export, providing 95% of the country’s earned export income, but under the ‘Bolivarian socialism’ installed by the late President Hugo Chavez, and continued under his successor, Nicolás Maduro, the industry — which Mr Chavez nationalized –the country needs most is floundering.

Margaret Thatcher once said that socialists fail because they always run out of other people’s money. Petroleum brings other people’s money into Venezuela, and now, the socialists have managed to run out of their own money, to the extent that they can’t bring in enough of other people’s money!

All of the theories of socialism simply assumed that it would be self-sufficient; the theorists never took into account trade imbalances favoring some countries over others. When oil was over $100 a barrel, even Venezuela’s lower-quality “heavy sour” crude brought in enough money to paper over the inherent problems of socialism, but now that the market has settled on more reasonable prices, the trade imbalance favoring Venezuela is no longer enough to hide the problems.

Capitalism is the only economic system we have ever seen which has lifted more than a tiny minority of the people living under it above the subsistence level. And now we’ve seen that socialism, which the socialists believe would follow capitalism, brings an economy back down to where only that small minority — meaning: the men with guns — live above the subsistence level.

For most, the equality of results socialism brings is equality on poverty.


  1. I thought Saudi Arabia had the world’s largest oil reserves. Or possibly Russia or, more recently, the USA after fracking was discovered.

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