It has been a tough summer for Venezuela. The already ailing country, in the throes of a severe lockdown, is also experiencing a major environmental disaster. In July, a state-owned refinery began to spill oil into the Morrocoy National Park, one of the country’s most biodiverse areas. Venezuela also experienced a new political crisis. The government essentially voided several opposition parties by taking control of their executive boards.
These catastrophes are two sides of the same coin. Rising authoritarianism in Venezuela has led to oil mismanagement, which in turn has led to environmental degradation. And oil mismanagement is now turning the regime even more autocratic, which in turn is leading to opposition debasement.
Pundits often debate whether rising oil fortunes contribute to the rise of authoritarianism. Large oil windfalls, the argument goes, allow states to offer consumption booms to the public in lieu of political rights and to fund repressive forces. But the Venezuelan case seems to be showing that declining oil fortunes can be both a cause and a consequence of hardening authoritarianism.
Venezuela used to be one of the most competitive oil producers in the world. But its oil industry has been run into the ground over the last two decades, first under President Hugo Chávez and now under his successor, Nicolás Maduro. Measured in terms of proven reserves, Venezuela may have more oil than Saudi Arabia. But in terms of output, Venezuela’s oil industry has collapsed. The country’s production of oil is at a 77-year low.