The oil companies were attracted to Venezuela because of the expectation of large oil deposits, relative political stability, and the good terms offered for the exploitation of the country's oil resources. Venezuela's geographical position vis à vis the major oil markets placed her at a freight advantage over both her Mexican and Middle East competitors, and even over some American oilfields. Maracaibo is 113 miles nearer New York, and 863 miles nearer Southampton, than the Mexican port Tampico, and is only 644 miles from the Panama Canal. This meant that Venezuela was ‘favourably situated to export to Europe, to the United States and to the Pacific coast of America, and the Far East via the Panama Canal’. Furthermore, her logistic production problems were far fewer than those of her Middle East competitors, because the oilfields were conveniently situated near sea transport, and because the offshore Dutch islands of Curacao and Aruba provided the companies with a safe haven in which to build their large refineries. Unlike the Middle East and Iran, Venezuela devised a concessionary system whereby most oil companies, regardless of nationality, could operate. In addition, production costs were much lower than in the U.S. and the number of barrels produced per active well much higher. Moreover, 80.5 per cent of the total number of wells drilled in Venezuela up to 1935 were productive, thus demonstrating much lower exploration and drilling costs in Venezuela than in the U.S.