Chevron Doubles Down on Venezuelan Oil Amid US Deal

Chevron is expanding its operations in Venezuela after the country agreed to provide the US access to 65 billion barrels of oil. The Houston-based company will invest over $7 billion over the next five years as part of a joint venture, aiming to expand production to approximately 600,000 barrels of oil per day.

Chevron's expansion comes despite previous hesitation from other US oil companies, including ExxonMobil CEO Darren Woods, who called Venezuela 'uninvestable' in January. The company first established a presence in Venezuela in the 1920s and has remained there even after the country nationalized its oil industry in 1976.

Rusty equipment, leaks, and broken fences are just some of the challenges that need to be solved before increasing production can occur, according to Jorge Leon, head of geopolitical analysis at Rystad Energy. It would take more than a decade and $183 billion to restore Venezuela's oil production to its 1990s-era level, analysts said in January.