The exploration, drilling, production and field maintenance of production is done by a large group of companies that apply their particular expertise to what is needed on a day to day basis. If Hugo truly nationalizes the entire infrastructure of the oil industry it will collapse. The skills of those involved in oil production and exploration are essential. These skills are in demand world wide. They will leave Venezuela. Production will fall off a cliff. It should also be noted that the oil fields in the Lake Maracaibo area are quite old. These fields demand great amounts of work by specialists to keep the production up. Many of these fields are now on secondary and tertiary production enhancement. This is very labor intensive requiring great expertise.
Hugo is shooting himself in the foot.
Quite. And while it is no surprise that he'd pull this sort of thing... I do have to say that I cannot fathom why a dictator would be so eager to commit economic suicide.
It's something I've never understood about dictatorships. I mean... if I were a dictator of some banana republic I would think it would be a lot more fun to run a country that was successful and becoming more wealthy than to drive the economy into the dirt. I'd want jets and golf courses and gold plated yadda yaddas. You don't get that sort of lifestyle by creating more poor people. You get that sort of lifestyle by creating a wealthy country.
I'd want foreign investment flooding in, instead of running away. Sure, I know he's just an ordinary leftist believer, but still... it's so obvious that even the true believers have to finally get it. Don't they?
Look at the difference between guys like Chavez and Kim Jong Il... and somebody like the Sultan of Brunei. Seems to me, the Sultan has got this gig figured out. :-)