Venezuela: PDVSA's Collapse

Venezuela's government claims that its oil industry produces more than 3.3 million barrels per day, but new estimates confirm STRATFOR's two-year-old forecast that Petroleos de Venezuela's crude oil production capacity is collapsing. Venezuelan President Hugo Chavez needs a healthy oil industry to keep his revolution afloat financially. However, his escalating threats and bullying tactics against foreign oil companies are discouraging critically needed oil and gas investments.