Chevron Doubles Down on Venezuelan Oil
US oil giant Chevron is expanding its operations in Venezuela after President Donald Trump announced an ambitious deal to develop the nation's oil reserves and give the Pentagon a stake in the profits.
Chevron, the only US oil company with a major presence in Venezuela, will invest more than $7 billion over the next five years. The company plans to increase its production from about 300,000 barrels per day to approximately 600,000 barrels per day by developing additional acreage in the Orinoco Belt.
Venezuela holds the world's largest proven oil reserves, with over 303 billion barrels of crude oil. However, the country's energy infrastructure is severely degraded due to years of neglect and international sanctions, resulting in a daily production rate of just over 1 million barrels compared to Saudi Arabia's 10-11 million barrels per day.
The deal has been met with skepticism from energy experts who say it will take years to revive Venezuela's oil industry. They also question the legitimacy of the agreement, citing concerns that future Venezuelan or American administrations may overturn it.