Asphalt, found in the Bermudez Pitch Lake five miles from Guanoco in the State of Sucre, is an important source of wealth. This lake, the largest known deposit in the world (1100 acres), has more than ten times the area of the famous Trinidad Lake, though it is not so deep. It is regarded as the residue of evaporated petroleum, the asphalt here representing the outflow of 80,000,000 barrels of oil. The flow continues, the oil spreading over the lake and replenishing it. This with active seepages near indicates enormous oil bearing formations below.
The General Asphalt Company and its subsidiaries have a 30 year lease of nearly 12,000 acres including the lake. The structure of the lake includes faulting, folding, and fracturing of strata, with formations of black shale, sandstone, and fossiliferous limestone, the last supposed to be the source of the oil, and the sandstone its reservoir, whence from pressure of gas it escapes to the surface. A narrow gauge railway is in use. From lack of transport hardly 20,000 tons of asphalt were shipped from Bermudez Lake in 1920 compared with over 40,000 in 1919; from Trinidad Lake, about 70,000 in 1919 and over 108,000 in 1920. In the Bermudez concession is a large asphalt deposit 100-200 yards across, on the Island of Capure in the Orinoco Delta.
In the Maracaibo Basin are other beds. One near the Lake at Inciarte, 27 miles from navigable water, is 94 per cent pure; but transportation is difficult.
The Petroleum prospects of Venezuela are excellent. The chief work accomplished is in the Maracaibo Basin, which is regarded as one of petroleum as well as of water. Many companies are engaged in development work. After two years of preliminary examination by 35 experienced geologists, the Caribbean Petroleum Company selected 1000 areas averaging 1250 acres each for further investigation. Of these they now retain 250, covering 312,500 acres. With a lease concession for 30 years, a tax of eight cents an acre is paid annually and a royalty equal to about ten per cent on oil shipped from the country. On one section, the Mene Grande Field, ten miles east of Lake Maracaibo to which a road through swamps was built, about a dozen wells have been drilled, in all of which oil has been found. The first were capped, but with present facilities flow is permitted. The character of the oil improves with depth. Three 55,000-barrel steel tanks have been erected, and pumping stations on the field and at the port. A pipe line was laid 11 miles to the shore at San Lorenzo, where, 70 miles southeast of Maracaibo, storage tanks and a refinery were built. The latter, now in operation, will refine every grade of oil except lubricants. The capacity is 2000 barrels daily (42 gallons each). One well is said to rank in output with some of the Mexican. Much of the oil is now used by some Venezuelan railways, and by industries of the country. Part of the crude oil is carried by three barges and eight converted monitors of 450-500 tons each to a refinery at Curaçao, which has larger storage tanks, pumping station, etc. The refinery has been running 1000 tons of crude oil daily, but can take care of 4000 tons. The swift current of the Maracaibo Channel makes management of the monitors difficult. This Company has other wells at Perija, 50 miles west of the Lake. The first, which struck oil at 1227 feet, was shut in. One in the Limón Field, drilled to 2752 feet, was abandoned.
Other companies have concessions for work near the Lake, at the east, south, and southwest. One was hampered by wild Indians, compelling the employment of armed guards, another by extremely unhealthful conditions; but both after some unsuccessful work have found promising wells. The Colon Developing Company, with a large property 100 miles west of Encontrados and near the Colombian border, has struck oil at less than 1300 feet, close to the Rio de Oro. Two thousand barrels of high grade oil were produced within 24 hours, but as no facilities for transport existed the well was capped. This oil is said to be of quality superior to that east of the Lake, which is better than the Mexican.
East of the Lake, another field, north of the Mene Grande, is owned by the Venezuelan Oil Concessions. Wells drilled here have passed through three oil bearing sands; the deeper, the better and lighter the oil. One has spouted 80 feet high; another over the top of the derrick. An area of several square miles is proved. This Company has 3000 square miles of oil bearing land near the Lake for 50 years. In Mexico wells producing 100,000 barrels a day are seen. The general manager of this Company believes the Venezuelan wells will be bigger.
The Venezuelan Falcón Oil Syndicate, which has a 50 year concession of over 2000 square miles in Falcón, expects to open up many fields. Pipe lines could converge and refineries be installed within 50 miles of the farthest point. The first well drilled is 37 miles from the seaboard. Motor tractors are employed. The British Controlled Oilfields has taken over the Bolívar Concessions, which has the right to bore in 7,000,000 acres in Falcón.
On the Island of Trinidad 362,800 barrels of crude petroleum were produced in 1920. Near this Island, corresponding to the oil region at the northwest of Venezuela, is one at the northeast around the Gulf of Paria, especially at the south, and comprising the Orinoco Delta. Here is found the heavier form of petroleum in large quantities. Some wells have been drilled on the Peninsula of Paria with no good result. The Guanoco Field, south, is believed to cover the axis and flanks of the Guanoco anticlines, of which the southern is thought to be responsible for the great oil seepages of the Asphalt Lake. The field is believed to extend 60 miles southwest, to and beyond the San Juan River. The first well was drilled (1912) in the Lake. Heavy oil, specific gravity 1.02, was found under enormous gas pressure, making operations difficult. Production of 1000 barrels a day was secured at 615 feet, but the well was closed to avoid waste. Later it produced in three months 50,000 barrels. Other wells have been drilled in the vicinity, also on Pedernales Island in the Delta; the oil from the latter of lighter gravity. For some purposes the heavy oil is of special value. It is too heavy to pump, but the strong gas pressure makes it available. The areas are swampy, difficult to work, and unhealthful.
Manufactures
As might be expected, the manufacturing industries of Venezuela are few in number and rely in the main on a protective tariff for existence. The principal articles made are cotton goods, paper, glass, cement, cordage, soap, candles, shoes, alpargatas, leather goods, cigars, cigarettes, etc. The five cotton factories produce 80 per cent of the ordinary cloth consumed in the country. In Mérida are woolen and hat factories. In Caracas good furniture is made, macaroni, paper, etc. There is a paper factory also at Maracay. Ten miles from Caracas the waterfall of Naiguatá, over 3000 feet, makes available 30,000 horse power, of which 9000 is used.