Planet Money Chevron, Venezuela and the Paradox of Plenty
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Jan 17, 2026 
In this engaging conversation, Terry Karl, a political economist from Stanford with deep expertise in Venezuelan oil politics, dives into Venezuela's paradoxical relationship with oil. He explores how Venezuela became the world’s first petrostate and the complex consequences like Dutch disease and the resource curse. Terry also highlights Chevron's curious, decades-long partnership with this socialist nation, its navigation through corruption, and the impact of U.S. sanctions, questioning if a revival in oil could truly benefit the Venezuelan people.
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Venezuela As The Original Petrostate
- Venezuela was the world’s first petrostate that shifted an entire economy from coffee to oil almost overnight.
- That single-resource shift created long-term economic vulnerabilities like Dutch disease and mono-economic dependence.
Dutch Disease Destroyed Old Industries
- The Dutch disease made Venezuela’s currency appreciate and destroyed its coffee industry overnight.
- Resource wealth reshaped the economy but reduced diversification and long-term resilience.
Paradox Of Plenty Is Political
- The “resource curse” or paradox of plenty linked oil wealth to corruption, political centralization, and instability.
- Terry Karl argues these are political outcomes driven by human choices, not the oil itself.