By: Economic & Finance Report
Venezuela’s economy has been hit with economic hardships within the last few years. Lack of positive economic indicators have led to depleting oil reserves and lesser oil production, in the south American country.
Mega companies and corporations, who invest in the oil sector in the region, have been hit the hardest from Venezuela’s oil turmoil, which continues to be spiraling south (of the border), no pun intended…..
Companies such as Halliburton, along with others, have taken significant losses with oil in Venezuela; writing off multi millions and in some cases billions of dollars, from their accounting books & records. US oil companies complain not being paid by subsidiary partners in the Latin American nation, or if the companies are being paid, they are being compensated very late.
Venezuela saw in 2017 a loss of 15% in economic revenue to the country, substantiated by the decrease of oil production within its sector. Some US companies have indicated they will have a “wait and see” approach in the future, of doing business in Venezuela. They have indicated pulling out of Venezuela may be pre- mature, but who knows what the future holds? -SB