Kenny Malone

A classic feature of a country with a resource curse, many would argue.

At the time, because of politics, the U.S.

was not getting oil from Arab countries, which meant it was paying oodles of money to Venezuela for oil.

And with that agreement to share at least half their profits with Venezuela's government, it was bad.

Boom boom boom time, baby.

Yeah.

Caracas, the swinging city of Venezuela.

Now, while this was all happening, Venezuela was taking the next step on its march towards nationalization.

In 1976, Venezuela made good on its promise to fully take over the ownership of its oil from the multinational corporations.

No more 50-50 agreement.

The foreign companies could stay, but under strict rules.

They would essentially be contractors of the state-run oil company.

It was actually around this time that Stanford political economist Terry Carl first went to Venezuela as a graduate student.

He said lover.

She said it was the lover.

So Venezuela was richer than ever.

But there was one problem.

Those riches were being mismanaged, many would argue.

Terry told us this story of a visit with Juan Pablo Perez Alfonso, that key oil minister who had driven so much of Venezuela's oil policy in the past.

Juan Pablo was out of office at this point.