Oil plays an important economic and social role in Venezuela. The country earns $15 to $20 billion per year in oil revenues, constituting between 75 and 80 percent of Venezuela's total exports. Taxes, royalties and dividends from PDVSA represent roughly 50 percent of all government revenues. Oil activity directly and indirectly generates around 40 percent of national economic activity. (Giusti) The oil impacts on Venezuelas economy can be broken down into three concentric circles. The first circle, the inner, consists of PDVSA's expenditures on operations such as production, transport, refining, marine shipment and petrochemicals, as well as the company's various project investments. The second circle contains the activities of other companies
