Economic data show that state-run oil company Petróleos de Venezuela (Pdvsa) should return to the path of investment in the oil business. However, the oil conglomerate, which has become one of the pillars of President Hugo Chávez government's social policies, faces a dilemma.

According to a report issued by Venezuelan research firm Ecoanalítica, in 2009, for the first time under the government of Hugo Chávez, oil prices did not spur economic growth. This was due, among other factors, to stagnant Pdvsa production. The oil holding generates more than 94.1 percent of Venezuelan foreign currency. Further, it provided an average of more than 45 percent of tax revenues in recent years.

In 2009 Pdvsa Annual Management Report, the holding estimates that its 2010-2015 investment plan will require approximately USD 252 billion to reach sustainable production of 4.5 million barrels per day, including crude oil, liquefied natural gas, ethane, by year 2015.

Pdvsa expects to contribute 78 percent of the funds required under the plan (USD 197 billion). The firm will get 15 percent of the funds from investment with third parties (USD billion), and the remaining 7 percent will come from investments related to the Orinoco Socialist Project (USD 18 billion).

Ecoanalítica said that between 2004 and 2009, Pdvsa used, on average, some 32.1 percent of revenues to fund these projects. In 2009, Pdvsa spent 50 percent of revenues in investments.

Translated by Gerardo Cárdenas