Chevron will expand Venezuela operations after Trump deal, company confirms
Chevron expands operations in Venezuela
Chevron announced Wednesday that it plans to more than double its oil production in Venezuela over the next five years through a $7 billion investment. The expansion will further strengthen the company’s position in the country. Chevron CEO Mike Wirth said the investment will support low-cost oil growth, energy supply and long-term value. The expansion is a major win for the Trump Administration.
Chevron, the only U.S. oil company with a major presence in Venezuela, will expand its operations there.
The oil giant confirmed the news Wednesday, just days after President Donald Trump announced a deal to rebuild Venezuela’s oil reserves and give the Pentagon a stake in the profits.
Chevron’s Venezuela expansion
What they're saying:
Chevron says it has been given additional land in the Orinoco Belt, where it already has operations.
RELATED: US to take partial control of Venezuela's oil reserves, Trump says: Will it lower gas prices?
"Chevron’s history in Venezuela spans more than a century, and our expanded position reflects our confidence in the country’s deep resource potential and its ability to compete for investment within our portfolio for decades," CEO Mike Wirth said in a prepared statement.
Chevron said it plans to invest more than $7 billion in Venezuela over the next five years and hopes to double its current production there to about 600,000 barrels a day. (Photo by Charles-McClintock Wilson/NurPhoto via Getty Images)
By the numbers:
The company said it plans to invest more than $7 billion over the next five years and hopes to double its current production to about 600,000 barrels a day.
Venezuela’s vast oil reserves
Venezuela holds more than 303 billion barrels of crude oil in its reserves. It’s the world’s largest reserve, according to OPEC’s 2025 Annual Statistical Bulletin. Saudi Arabia is a distant second with 267 billion barrels.
Dig deeper:
Despite its vast reserves, the country’s infrastructure is degraded and the nation is operating under international sanctions, bringing its daily production to just over 1 million barrels. The U.S. produces almost 14 million barrels per day.
Chevron, the second-largest U.S. oil company, has had a presence in Venezuela since 1923.
What we know about US-Venezuela oil deal
Besides a social media post from President Donald Trump, the White House has said little about what he is calling "THE BIGGEST OIL DEAL IN WORLD HISTORY" in Venezuela.
Why does Trump want Venezuela’s oil?
The backstory:
Trump has been after Venezuela’s oil since the U.S. military captured former Venezuelan President Nicolás Maduro in January. He has pressed to get U.S. oil companies back into the country, but there’s no evidence that any other major companies are interested.
Exxon Mobil CEO Darren Woods said in January that Venezuela was "uninvestable." An Exxon spokesman said this week that "nothing has changed."
What impact will the US-Venezuela oil deal have?
President Trump on Friday announced a massive oil deal between the United States and Venezuela. Trump said the deal is the "biggest oil deal in world history." Chief energy advisor for Gulf Oil Tom Kloza joins LiveNOW's Andy Mac to discuss the impact this deal could have on the economy and oil prices.
The agreement for the U.S. to have a stake in Venezuela’s oil has been met with skepticism from analysts. Trump has said it will "substantially lower" gasoline prices in the U.S., but experts say it’s not likely given that it’ll take several years and billions of dollars to rebuild the country’s oil business. There are also concerns over whether Venezuela’s acting president, Delcy Rodríguez has the authority to give Chevron 100-year rights without approval by the country’s National Assembly.
The national average price for a gallon of regular gasoline jumped overnight to $4.12, according to the motor club AAA. That is 93 cents more than it cost at this point last year.
The Source: This report includes information from The Associated Press.