In Venezuela’s Orinoco river belt, there are several foreign companies such as Exxon Mobil and ConocoPhillips from the US. Today, Venezuela is trying to stop the foreign operations, especially those from the United States, by seizing their operations. These companies have reacted to the confiscation of their oil exploiting rights, and have held hearings in New York and the International Centre for the Settlement of Investment Disputes has intervened. Chávez has retaliated by threatening to stop Venezuelan oil exports to the US.  However, Venezuela receives more than 75% of their income from these oil exports, and part of this money is then spent on purchasing imported food. Venezuela doesn’t produce enough food for the population, so they rely on food imports from other countries, such as the US. (Exxon’s wrathful tiger takes on Hugo Chavez; Oil in Venezuela)

As Venezuela tries to nationalize the oil exploitation zones and get rid of certain foreign companies, notably those from the US, they have set a goal of producing 5 million barrels per day by 2012. On the other hand, sources such as the OPEC say that the current production of oil in the country is at 2.5 million b/d and is actually decreasing. While Chávez is trying to have more control over the oil exploiting nations in the Orinoco Belt, he is allowing allied countries to develop the area. Recently, Belarus and Iran visited the belt and were invited to bring their national oil companies to start extracting from this zone. Venezuelans have increased their oil consumption because the oil in their country is kept at very inexpensive rates, even if worldwide the cost of oil keeps rising. Presently, Venezuelans use between 600,000 to 800,000 barrels of oil per day. (Exxon’s wrathful tiger takes on Hugo Chavez; Oil in Venezuela)

Chávez has chosen to nationalize previously privately owned sectors of the Venezuelan economy to continue his plans of a socialist economy for the country. For example, Sidor, Venezuela’s largest steel-producing company, was “returned to state hands” in April 2008. The cement industry in Venezuela was also nationalized, and this surprised Cemex, Holcim, and Lafarge, owned by Mexico, Switzerland, and France, respectively. These three foreign companies used to own 90% of the cement sector, which now belongs to the state. The telecommunication, electricity, and oil industries have been nationalized as well. (Mander (b))

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