Chapter 6: Section 4

Chapter 6
Latin America
Exploring South America

Section 4: Venezuela: Oil Powers the Economy

A. As You Read
Directions: As you read Section 4, list the main events in the history of Venezuela's oil industry. Describe the effect each event had on Venezuela's economy.

The History of Venezuela's Oil Industry

Events in Venezuela's Oil Industry

Effects on Venezuela's Economy

1. Early 1900s - oil is discovered

2. Oil production begins to grow rapidly; oil reserves are among the biggest in the world

3. 1970s - oil prices go up

4. The standard of living of many Venezuelans goes up; government starts building projects

5. 1980s - price of oil falls

6. Government continues to spend and has to cut jobs when income from oil exports falls.

7. Late 1980s - 1990s - privatization of oil deposits

8. Government tries to make the economy less dependent on oil; production of steel , gold, cocoa, coffee, tropical fruits

B. Reviewing Key Terms
Directions: In the space provided below, write the definition for the following key terms.

9. boom

A period of increased prosperity when more of a product is produced and sold

10. privatization

A process of selling government-owned industries to private investors

Events in Venezuela's Oil Industry	Effects on Venezuela's Economy
1. Early 1900s - oil is discovered	2. Oil production begins to grow rapidly; oil reserves are among the biggest in the world
3. 1970s - oil prices go up	4. The standard of living of many Venezuelans goes up; government starts building projects
5. 1980s - price of oil falls	6. Government continues to spend and has to cut jobs when income from oil exports falls.
7. Late 1980s - 1990s - privatization of oil deposits	8. Government tries to make the economy less dependent on oil; production of steel , gold, cocoa, coffee, tropical fruits