Well.... it’s more complex than what meets the eye. Setting politics aside, the ABCs have for many years been linked to Venezuela, and vise-verse. One of the most challenging goods for the Venezuelan government to manage is fuel. Diesel, gasoline and many other oil derivatives like motor oil, brake fluid, and an assortment of regular and industrial lubricants are profoundly subsidized. Why? It’s becuase during the early years of oil exploration and production, American, Dutch and other European corporations helped tap into a resource that Venezuela did not previously depend on, nor knew how to deal with. This was around 1920. Keep in mind that until then, Venezuela was a small Country with little to no industry but some timid Agricultural productions allowing it to export coffee, cacao and other products. Not much income nor much relevance in the world stage.
Years later... Oil fields grew and grew, with various communities or settlements that housed American, Dutch and other foreign talent becoming the place to be. In the 60s, all aspects of society went to levels of prosperity never seen. By then, the economy had essentially switch from ag to oil.
One day, in 1976, the Venezuelan government took over all oil facilities and by decree, forced all foreign investors to essentially turn over everything. By then, Venezuela had transitioned from dictatorship to democracy, had invested resources in education and had a healthy number of native talent, with knowledge of how to run the industry. This forced a significant number of Dutch and American companies and staff back home. ABCs are Dutch or have close ties, associations with Dutch Government. Short flight from Venezuela and well... lots of close by friends and family.
To get buyin from locals and to help justify some of those anti-capitalist decisions, a pledge was made.... gas and all derivatives would be sold to the general public at ridiculously low prices. It’s all public property anyway. How low are these prices today? How does this sound... $0.04 U.S. a gallon? Not a typo. It’s four cents a gallon.
In the 80s, Venezuela had more money than they could ever dream of having, and with that new found wealth and influence came a series of investements. Oil managers purchased Citgo, they built tank farms in Bonaire, Curaçao, St. Croix, and several other Caribbean islands.
Venezuela has/had a series of oil storage facilities across the Caribbean, some have or had refining capabilities and other just serving as shipping points. Why? It’s easier to load up oil tankers in deep waters, shortens delivery times and it made sense when taking care of customers needs.
With that said, lots of people, partícularly those with ties to the early Dutch oil explorers, a significant number of them moving to the ABCs after the nationalization of the industry, maintain family and business ties.
During WW2, Venezuela supplied oil and other resources to the US and it’s allies, which don’t forget needed to be actively patrolling the Caribbean. It was a close friend of Dutch monarchs and was friends of the US.
Trade with the islands, not just the ABCs, but Trinidad and Tobago, and well... a good number of the West Indies boomed.
Today, again, setting politics aside, Venezuela lost its democracy and is deep in debt. Most of its professional talent has been forced to leave, it’s economy is in shambles and it’s currency is worthlessness. So what can people do? If a physical metal coin is worth more for the metal it’s stamped on and it’s mineral composition per se... well, those that figure it out start collecting and buying all the coins they can, they put them in crates and take those worthless coins to Colombia, the ABCs or anywhere they can swap them for much more as raw material than whatever number or whoever’s face, or creature is stamped on it.
In the cover of night, boats loaded with goods, oil, brake fluid, grease, gas, diesel, some old coins or whatever can be acquired at minimal cost in Venezuela, stowed in the lower deck, and fruits and vegetables on the top, make the passage.
Coming back, these boats carry Gouda Cheese, Johnny Walker whiskey and of course foreign currency.
The Venezuelan government currently subsidieses food, and its hard to find. If a regular person can by 2 lbs of sugar, or rice for $0.10, put it on a boat, cross to an island over night, sell if for $2.75. Not bad. Right?
The Venezuelan government is accusing everyone, in this case, the ABC islands for not discouraging or for allowing this type of informal trade to occur. They claim it benefits others instead of the Venezuela nationals that are the original intended recipients of all subsidy.
Compounding this challenge is the current value of oil, so low that Venezuela can’t repay its debt, can’t subsidize goods, can’t keep from collapsing and it’s also no longer friends with many of its neighbors, yet alone the U.S.
In Bonaire, Venezuela has a tank farm than can hold up to 10 million barrels of oil and nafta. By the way, not too long ago, one of the tanks cought on fire and it was left to burn itself out. Very scary... close call...Any way, today, Venezuela is risking loss of its lease of the tank farm with the Dutch, for insufficient industrial safety measures, lack of overall maintenance of facilities, high risk of failure and of course, not paying its bills.
The Venezuelan government is feeling the squeeze, is strapped for cash, it’s losing resources and they are upset with the ABCs, and everyone else for this and many more reasons that only the Venezuelan government can make sense of or justify.
Hope this helps.
