"The imperialists can go to hell", snarled Rafael Ramirez, the head of Venezuela's state oil company, Petroleos de Venezuela (PDVSA), last week."Their sanctions mean nothing to us".
Mr Ramirez was referring to US sanctions on PDVSA over its petrol supplies to Iran. In fact, the sanctions are extremely mild - they do not prevent Venezuela selling oil to the USor target its US subsidiary, Citgo. But the spat again raises the troubled, adversarial course of Venezuelan oil.
Venezuela's recent history has been a tug of war between the interests of the middle classes, the poor, PDVSA, Opec and oil consumers, notably the US.
After the 1986 oil price crash, Venezuela reluctantly accepted a 1989 IMF austerity plan. Carlos Andres Perez, the lanky, balding veteran president, eliminated petrol subsidies, hitting the poor hard and triggering rioting and a brutal government crackdown, the infamous Caracazo, in which as many as 3,000 people may have died.
The old, cosy, corrupt Venezuelan political order, in which two essentially middle-class parties, AD and Copei, alternated power and patronage, was utterly discredited. The army officer Hugo Chavez vaulted to nationwide prominence via his 1992 coup attempt; although it failed, he was elected president in 1999, running on a platform of Venezuelan nationalism, anti-colonialism and pro-poor policies.
Although PDVSA is one of the better-run national oil companies, its contributions to the government budget had been steadily declining, and it was run as a state within a state. It had ambitious plans for expansion, intending to produce 8 million barrels per day by last year, which would have made Venezuela the world's third-largest producer, just behind Russia and Saudi Arabia.
One of Mr Chavez's first priorities was to rein in PDVSA. He hosted the first Opec summit for 25 years and, largely by restraining Venezuela's own production, restored credibility to Opec's quotas. This contributed significantly to the rise in prices up to 2003, before other factors, such as the war in Iraq and soaring Chinese demand, took over.
Middle-class opposition to the president's socialist policies led to a general strike that gripped the country from December 2002 to February 2003. PDVSA employees led the strike, and 18,000 of them, 40 per cent of the workforce, were subsequently sacked.
Production, which had almost ground to a halt, has never fully recovered - from 3.2 million barrels per day (bpd), it is now about 2.8 million bpd. Foreign oil companies were targeted with higher taxes and nationalisation. Investment has been slashed, and leading companies including ExxonMobil have been replaced by firms from Mr Chavez's allies such as Belarus and Iran, without the skills to develop the Orinoco area's hundreds of billions of barrels of sticky, extra-heavy oil.
World markets and prices would be dramatically different without Mr Chavez. He is thus one of the pivotal figures of 21st-century oil - but not entirely in a positive way, even for Venezuelans. Partly because of him, Saudi Arabia has enjoyed the luxury of increasing both production and prices, while high prices have helped to empower Russia's Vladimir Putin and Mr Chavez's soulmate, Iran's Mahmoud Ahmadinejad.
Venezuela poured swelling oil revenues into social programmes, which PDVSA had to implement. For the first time, the Venezuelan poor saw some real concern from their government, with land reform and free vaccinations, health care and literacy classes.
But these successes came at heavy cost. A fairly capable state company became a welfare organisation: PDVSA grows food, in short supply because of domestic price controls, and makes furniture and home appliances. About half of its oil is delivered to Latin American allies at subsidised prices. Inflation is above 30 per cent, hitting the poor hardest, and despite large gas reserves, the country is experiencing an electricity crisis.
Brazil, a Latin American neighbour of Venezuela, is a different matter. Visiting in March, President Barack Obama said: "Brazil holds recently discovered oil reserves that could be far larger than ours … we look forward to developing a strategic energy partnership."
In 1997, Brazil ended the monopoly of its national oil company, Petrobras, and by 2000, it had sold almost half its shares on the Brazilian stock exchange. Petrobras became an expert in deepwater exploration, and from 2006 onwards, made a series of giant oil and gas discoveries in the offshore "pre-salt" area.
Brazil pursued macroeconomic stability, low inflation and constructive relationships with both the West and Latin American neighbours. Oil revenues will help to develop industry and expand social programmes, the "Bolsa Familia" that guarantee an income to poor families.
"We do what best serves the people of Venezuela and what best serves the interests of the Venezuelan state," Mr Ramirez said. But looking at the contrast between PDVSA and Petrobras, this looks questionable.
Brazil has trodden the hard path of incremental reform. The easy option of handing out oil money and berating the West has had only mixed results for poor Venezuelans in the barrios. Their future has now been mortgaged to the hope of ever-rising oil prices, undermined by the slow crumbling of their nation's primary industry.
Robin Mills is an energy economist based in Dubai, and the author of The Myth of the Oil Crisis and Capturing Carbon
business@thenational.ae
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
Revival
Eminem
Interscope
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
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Tuesday's fixtures
Kyrgyzstan v Qatar, 5.45pm
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Greatest Royal Rumble match listing
50-man Royal Rumble - names entered so far include Braun Strowman, Daniel Bryan, Kurt Angle, Big Show, Kane, Chris Jericho, The New Day and Elias
Universal Championship Brock Lesnar (champion) v Roman Reigns in a steel cage match
WWE World Heavyweight ChampionshipAJ Styles (champion) v Shinsuke Nakamura
Intercontinental Championship Seth Rollins (champion) v The Miz v Finn Balor v Samoa Joe
United States Championship Jeff Hardy (champion) v Jinder Mahal
SmackDown Tag Team Championship The Bludgeon Brothers (champions) v The Usos
Raw Tag Team Championship (currently vacant) Cesaro and Sheamus v Matt Hardy and Bray Wyatt
Casket match The Undertaker v Rusev
Singles match John Cena v Triple H
Cruiserweight Championship Cedric Alexander v Kalisto
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COMPANY PROFILE
Company name: Happy Tenant
Started: January 2019
Co-founders: Joe Moufarrej and Umar Rana
Based: Dubai
Sector: Technology, real-estate
Initial investment: Dh2.5 million
Investors: Self-funded
Total customers: 4,000
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
Your Guide to the Home
- Level 1 has a valet service if you choose not to park in the basement level. This level houses all the kitchenware, including covetable brand French Bull, along with a wide array of outdoor furnishings, lamps and lighting solutions, textiles like curtains, towels, cushions and bedding, and plenty of other home accessories.
- Level 2 features curated inspiration zones and solutions for bedrooms, living rooms and dining spaces. This is also where you’d go to customise your sofas and beds, and pick and choose from more than a dozen mattress options.
- Level 3 features The Home’s “man cave” set-up and a display of industrial and rustic furnishings. This level also has a mother’s room, a play area for children with staff to watch over the kids, furniture for nurseries and children’s rooms, and the store’s design studio.
Key figures in the life of the fort
Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.
Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.
Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.
Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.
Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.
Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.
Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.
Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.
Sources: Jayanti Maitra, www.adach.ae
Killing of Qassem Suleimani
The specs: 2019 Mercedes-Benz GLE
Price, base / as tested Dh274,000 (estimate)
Engine 3.0-litre inline six-cylinder
Gearbox Nine-speed automatic
Power 245hp @ 4,200rpm
Torque 500Nm @ 1,600rpm
Fuel economy, combined 6.4L / 100km
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
HAJJAN
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If you go
The flights Etihad (www.etihad.com) and Spice Jet (www.spicejet.com) fly direct from Abu Dhabi and Dubai to Pune respectively from Dh1,000 return including taxes. Pune airport is 90 minutes away by road.
The hotels A stay at Atmantan Wellness Resort (www.atmantan.com) costs from Rs24,000 (Dh1,235) per night, including taxes, consultations, meals and a treatment package.
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