Micronesia, Fed. States of Map for At the same time, foreign companies and governments wanted to avoid nationalization, as Venezuela was an important source of cheap oil, especially during WORLD WAR II. In March 1943, a new petroleum law called for equal sharing of profits between the Venezuelan government and the oil companies. In exchange for solidifying and extending concessions and allowing for new exploration, the Venezuelan government received the same amount of revenue as the foreign oil companies.
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Micronesia, Fed. States Of Map
In the 1970s, the Venezuelan government nationalized the country's oil industry. In 1971, the government announced that when oil concessions began to expire in 1983, they would revert to the STATE. Furthermore, no new concessions would be granted.
In response, companies lowered their investments in Venezuela, leading to decreased production. Micronesia, Fed. States of Map 2016.