Governments that own rich oil reserves consistently make bad choices concerning economic development and poverty. The New York Times' Tina Rosenburg >argues that state-run oil companies are of more concern than those owned by multinationals.

Venezuela is using the bulk of its oil profits for social programs such as health and education, but some standard of living statistics are actually going down. Health may be effected in the long run as gasoline within Venezuela sells for just 6 cents per gallon, prompting a vehicle (including Hummers) sales explosion.

Developing nations that are hungry for cash may have their oil production guided by profits to the exclusion of sustainability to the same or worse degree than privately-owned companies.