Vintage Photos Reveal Venezuela Before the Collapse — How Oil Made It Wealthy and Deepened Inequality

Venezuela once stood among the world’s wealthiest nations thanks to vast oil reserves. Vintage photographs and contemporary analysis trace how a century of oil wealth modernized cities, shaped culture, and widened social divides — and how decades of economic collapse have since driven millions from the country.

A Nation Built On Oil

Oil was first discovered near Lake Maracaibo in 1914. Foreign investment poured in through the 1920s and 1930s, transforming a primarily coffee-exporting economy into a petroleum powerhouse. By 1940, Venezuela was the world’s third-largest crude producer, and later laws required oil companies to share portions of revenue with the state.

From Boom To Bust: Reserves Versus Production

Today, Venezuela holds roughly a fifth of the world’s proven oil reserves, yet it produces less than 1% of global oil output — a collapse frequently attributed to deteriorating infrastructure and mismanagement. In early January, a U.S. military operation in Venezuela reportedly resulted in the capture of President Nicolás Maduro; Maduro later pleaded not guilty to narco-terrorism and weapons-related charges in New York. Venezuelan authorities condemned the action as a "kidnapping," raising urgent questions about sovereignty, legality, and the country’s political future. U.S. officials have indicated interest in shaping a transitional government and encouraging investment from American energy companies to revive the oil sector.

Urban Expansion and Consumer Culture

Mid-20th-century oil revenues fueled rapid urban growth, concentrating jobs and investment in Caracas and other cities. A new, oil-oriented middle class emerged — likely under 20% of the population — creating demand for department stores, cafés, cinemas and international brands. Neighborhoods such as Sabana Grande exemplified a modern, cosmopolitan urban life shaped by global influences.

"The hardware of modernity — the buildings, the architecture, the glitzy lights, and planned development of cities — was made possible by oil," said Alejandro Velasco, an associate professor of Latin American history at New York University.

Luxury And Division

During the oil boom, luxury travel and consumption became symbols of status: from weekly Concorde service between Caracas and Paris (1976–1982) to elite hotels such as the Hotel Tamanaco, opened in 1953. Yet this glamour coexisted with deep inequality. While affluent districts displayed modern conveniences, many neighborhoods — the barrios — lacked reliable water, sanitation, and other basic services.

Politics, Public Works, And Modernization

The oil era coincided with political upheaval. Under the authoritarian rule of Marcos Pérez Jiménez in the late 1940s and 1950s, oil revenues financed large infrastructure projects and public housing superblocks intended to modernize cities. These projects were accompanied by forced relocations and strict social controls, and their failures left visible contrasts between monumental public works and adjacent informal settlements.

Large-scale projects such as the Guri Dam — constructed in phases from the early 1960s through the 1980s — reflected attempts to channel oil wealth into broader energy and industrial development.

Cultural Transformations

Foreign migration and oil-company presence brought cultural imports that became national staples. Baseball, introduced through oil camps, grew into a national pastime. Television, music, and beauty pageants like Miss Venezuela helped form a shared popular culture and national identity during the 1950s and afterward.

Legacy: Opportunity, Inequality, And Migration

Decades of oil-fueled expansion produced divergent experiences: urban professionals and elites enjoyed new consumer goods, travel, and modern housing, while many rural migrants and urban poor lived in informal settlements with limited services. After years of economic decline, nearly a quarter of Venezuela’s population has left the country, making it one of the largest recent migration crises. The vintage images serve as a reminder of both the country’s past prosperity and the unresolved social and political fractures that accompany its present challenges.

Sources: Historical accounts, expert commentary from historians Miguel Tinker Salas and Alejandro Velasco, and archival photography featured in the original report.