As early as the mid-20th century, Venezuela had become a pioneer in the international oil industry. In 1948, the country became the first country to sign a profit share agreement with the US oil company. In 1959, Venezuela took the initiative and finally reached solidarity with t

As early as the mid-20th century, Venezuela had become a pioneer in the international oil industry. In 1948, the country became the first country to sign a profit share agreement with the US oil company. In 1959, Venezuela took the initiative and finally reached solidarity with the Middle East oil producers by taking the initiative to attack around the world. The first handshake between Venezuela's Juan Alfonso Perez and Saudi Arabia's Abdullah Tariki led to the birth of the Organization of the Petroleum Exporting Countries (OPEC). Although its basic function was to establish an oil cartel, which brought great wealth and success to oil producers in the 1970s, Venezuela has been deeply angry that it has recently been marginalized in its decision-making. Venezuela's economy depends largely on the oil industry. The decline in oil prices has hit Venezuela's economy hard since last year. OPEC member states such as Nigeria, Angola, Algeria and Ecuador are also seriously affected, while Saudi Arabia, the UAE, Kuwait and Qatar are less affected due to their large cash reserves and relatively small populations.

Refineries in Venezuela But among OPEC non-gulf countries, only Venezuela has the political, historical and productive capacity to at least try to change the organization's policies. Rafael Ramirez, former Venezuelan oil minister and current Venezuelan ambassador to the United States, recently announced that Venezuela will propose a plan at the OPEC technical advisory meeting held on October 21 to gradually cut production through a carefully designed timetable to return to the production limit previously set by OPEC. The plan is to re-establish the bottom line of oil prices, with the goal first being to restore to $70 per barrel, and then $100 per barrel. Ramirez is working to convince the OPEC meeting to be held in the Venezuelan capital Caracas, apparently in the hope that the host's advantage will put pressure on the Gulf nations to agree to cut production. Is Ramirez's strategy expected to succeed? The short answer is impossible for three reasons: First, , Saudi Arabia, UAE, Qatar and Kuwait will never take action to change their oil market policies to help other less wealthy OPEC members struggling. Whether in diplomacy, military or economics, these countries first consider their own interests and self-protection in almost every aspect of their policy. Their leaders will never threaten their long-term oil strategy to aid a troubled oil-producing country. This is one of them. followed by . Even if OPEC can cut production, it may not necessarily lead to the results Venezuela wants, because Russia and other non-OPEC oil producers can continue to produce as much oil for sale as possible. As long as Russia and Mexico do not participate in OPEC's production cuts, oil prices will be difficult to ensure that they will not fall. Saudi Arabia has expressed its willingness to discuss a deal with non-OPEC oil-producing countries on production cuts, but even if Mexico and Russia agree to participate, countries like Canada and the United States with market freedom and energy companies privatization will definitely not. This is the second one. third , the adjustments made to policies by Saudi Arabia and other Gulf countries for their own purposes are being successful last year. Once oil demand increases, Saudi Arabia will sell more crude oil to build a new refining industry. Small-scale fracturing companies with insufficient funds will have to sell their assets. Saudi Arabia continues to enter the Asian oil market and the Asian refining industry. Saudi Arabia and other countries believe that the oil market will eventually rebalance over time, but now is not the time. This is the third one. Since Venezuela knows that the chances of success using the host's advantages are minimal, why should we stay tired of it? The possible reason is politically. Venezuelan leaders want to show their nation that their country has the confidence to overwhelm Saudi Arabia, whether successful or not. In addition, the country's position in front of weaker countries in OPEC will also be strengthened.

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