Chevron Bets Big on Venezuela's Oil Revival with $7 Billion Investment

U.S. oil imports from Venezuela have surged to a nine-year high, reaching 782,000 barrels per day in the week ended September 11. This marks a significant increase of 237% over six months and is the highest weekly level since August 2017.

Chevron, one of the largest U.S. oil companies, has a direct connection to this growth. The company plans to invest $7 billion in Venezuela over five years, targeting production above 600,000 barrels per day at costs below $20 per barrel.

This investment is part of Chevron's broader financial strength. In the second quarter, the company reported total revenue of $70 billion, up 56% from the year-ago figure, generating earnings of $12 billion and adjusted free cash flow of $15.4 billion.

Chevron's U.S. refineries processed a record 1.07 million barrels per day of crude in the second quarter, operating at more than 97% utilization. This creates a potentially valuable combination for Chevron, as its downstream business benefits from access to crude suited to sophisticated U.S. refining infrastructure.

While Venezuela remains a geopolitical and regulatory risk, Chevron has been authorized by the U.S. Treasury to conduct specified Venezuela-related activities. President Trump has also said he will use Venezuelan oil to help refill the U.S.'s Strategic Petroleum Reserve, which are near depletion levels.