Spain–Venezuela relations
News of Spanish losses in the 1808 Napoleonic Wars soon reached Latin America, but only on 19 April 1810 did the "cabildo" (city council) of Caracas decide to follow the example set by the Spanish provinces two years earlier. On 5 July 1811, seven of the ten provinces of the Captaincy General of Venezuela declared their independence in the Venezuelan Declaration of Independence. The First Republic of Venezuela was lost in 1812 following the 1812 Caracas earthquake and the Battle of La Victoria (1812). Simón Bolívar led an "Admirable Campaign" to retake Venezuela, establishing the Second Republic of Venezuela in 1813, but this did not last long either, falling to a combination of a local uprising and Spanish royalist reconquest.
History of Venezuela (1908–1958)
It did not take much geological expertise to know that Venezuela had large petroleum deposits, because the petroleum oozed out from seeps all over the country and an asphalt lake had formed naturally. Venezuelans themselves had tried to extract oil for a small hand-pumped refinery early in the 20th century. When word spread internationally of Venezuela's oil potential, representatives of large foreign companies came to the country and started lobbying for rights of exploration and exploitation, and Gómez established the concessionary system. Venezuela had inherited from Spain the law that the ground surface—presumably, as deep as a plow or a water well went—could belong to individuals but everything under the soil was state property. Thus, Gómez began to grant huge concessions to family and friends. Any one who was close to Gómez eventually would become rich in one way or another. Gómez himself accumulated immense expanses of grasslands for cattle-raising, which had been his original occupation and was a lifelong passion. The Venezuelan concessionaires leased or sold their holdings to the highest foreign bidders. Gómez, who didn’t trust industrial workers or unions, refused to allow the oil companies to build refineries on Venezuelan soil, so these were built them in the Dutch islands of Aruba and Curaçao. The one in Aruba was for a time the second largest in the world, after the one in Abadan, Iran. Although the Venezuelan oil boom started around 1918, the year when oil first figured as an export commodity, it took off when an oil well called Barroso blew a spout that threw up an average of the equivalent to 100,000 barrels a day. It took five days to bring the flow under control. By 1927, oil was Venezuela's most valuable export and by 1929 Venezuela exported more oil than any other country in the world.