Chevron Doubles Down on Venezuelan Oil Expansion

Chevron is expanding its operations in Venezuela's Orinoco Belt, where much of the country's oil reserves lie. This move comes just days after the US and Venezuela struck a deal to give the US access to 65 billion barrels of oil.

The Chevron expansion will involve investing over $7 billion over the next five years, expanding its production to approximately 600,000 barrels of oil per day. According to U.S. Secretary of Energy Chris Wright, 'The catalyst for transforming Venezuela is energy.'

This deal marks a significant shift in US involvement in Venezuela's oil industry, which has been plagued by corruption and low oil prices. Rystad Energy analysts estimate it would take more than a decade and $183 billion to effectively restore Venezuela's oil production to a 1990s-era level of around 3 million barrels a day.