Decline in the Venezuela Oil Industry

Oil drilling has been a part of Venezuela culture since the beginning of the 1900’s, and usually, this is how the Venezuelan economy survives. According to Venezuela: Oil Shock and Economic Catastrophe Venezuela has suffered its largest monthly oil production decline that Venezuelans have seen in decades. The economy was already struggling, but with this recent decline in the oil market, their economy is in trouble. Researchers from AtodoMomento are at work trying to determine the cause of the recent decline in the oil industry.
The oil industry is about 95% of Venezuela’s revenue, so this decline is hitting them harder than other countries that rely on the oil industry as well. Researchers like Danilo Diaz Granados tried to determine the reason for the decline and concluded that the decline was not based on the oil itself, but on the contractors and workers who work in the oil drilling industry in Venezuela. Apparently, the workers who were working in the oil industry were not getting treated fairly and it is clear now to the Venezuelan government they need to spend a little more time and effort to make sure their workers are being treated fairly. If workers are not happy, the productivity they produce will decline, just like this instance. Many believe Venezuela is one of the worst-managed economies in the world, so this could also be reasoning behind the oil industry decline.