"This could be devastating. We're talking about an economy where more than 80%-perhaps north of 90%-of the foreign exchange revenues for the government comes from oil. The oil is absolutely dominant," Monaldi said, noting that Venezuela's only other meaningful exports are modest mining and seafood industries. The questionably legal effort-a blockade is historically an "act of war"-could result in "hyperinflation" within Venezuela, a further weakening of its currency, an economic recession, and a fuel shortage for its citizenry, he said."
"Venezuela is home to the world's largest proven oil reserves, but the country produces less than 1% of global oil production. Venezuela's volumes have plunged from 3.2 million barrels daily in 2000 down to less than 1 million barrels today under the authoritarian socialist regimes of Maduro and his predecessor, Hugo Chávez, from a combination of mismanagement, underinvestment, and escalating U.S. sanctions."
The U.S. has seized a Venezuelan oil tanker and declared an oil blockade. The blockade could devastate Venezuela's economy, which depends on more than 80%–90% of government foreign exchange from oil. Venezuela's other meaningful exports are limited to modest mining and seafood industries. A blockade, historically considered an act of war, could trigger hyperinflation, further currency weakening, economic recession, and fuel shortages for citizens. Venezuela holds the world's largest proven oil reserves but produces less than 1% of global oil, with output plunging from 3.2 million barrels daily in 2000 to under 1 million today due to mismanagement, underinvestment, and sanctions. The U.S. has conducted strikes on Venezuelan boats citing national security and drug trafficking, with reported deaths exceeding 80.
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