On Wednesday, Chevron announced a $7 billion program to boost output in Venezuela during the coming five years. The company also acquired two new fields within the Orinoco Belt, a region that contains much of the country's ultra-heavy crude. This news arrives amid a rundown oil network in Venezuela following years of stewardship by its socialist leadership that left it in poor shape.
Chevron plans to lift output to 600,000 barrels a day by 2031, up from about 280,000 barrels per day today. The company operates in Venezuela through joint ventures with state-owned Petróleos de Venezuela SA, or PDVSA, and remains the lone U.S. oil major still active in the country.
According to CEO Mike Wirth in comments to CNBC, CEO Mike Wirth told CNBC that, after the interim government enacted a hydrocarbon law revising taxes, royalties, and other terms, Venezuela has become a more appealing place to invest. He said the changes have "taken this from not being very competitive within our set of alternatives to something that's very competitive versus our options around the world, which is why we're willing to commit significant capital and grow the way we are," speaking to CNBC's Brian Sullivan in Caracas.
Washington is also pushing to raise Venezuelan output via private capital. U.S. Energy Secretary Chris Wright is visiting Venezuela on Wednesday. Following the interim government's grant of 100 year concessions to NABEP spanning 17 oilfields, the U.S. and North American Blue Energy Partners formed a partnership to develop those reserves. In January, the U.S. seized former President Nicolás Maduro during a military raid and assumed control of Venezuela's oil exports, while Washington also aligned with interim President Delcy Rodríguez, who previously served as Maduro's vice president.
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On Wednesday, Chevron's stock barely moved, following a 13% rise over the last three months and a 39% increase in 2026. The near term takeaway is simple enough - future barrels and political risk will do most of the talking. If production ramps and the policy backdrop holds, that is a very different setup than if either one wobbles.