Chevron Expands Venezuela Operations Amid Controversy Over Trump Deal

US oil giant Chevron has confirmed it will expand its operations in Venezuela, investing over $7 billion over the next five years. The company aims to more than double production from 2026 levels to approximately 600,000 barrels a day.

The expansion comes after President Donald Trump announced an ambitious deal to develop Venezuela's oil reserves and give the Pentagon a stake in the profits. Chevron's CEO Mike Wirth said the decision reflects the company's confidence in Venezuela's deep resource potential and its ability to compete for investment.

Venezuela holds the world's largest proven reserves, totaling over 303 billion barrels of crude oil, according to OPEC's 2025 Annual Statistical Bulletin. However, due to severely degraded energy infrastructure and international sanctions, daily production is just over 1 million barrels, compared to Saudi Arabia's 10-11 million barrels per day.

Analysts have expressed skepticism about the deal, citing years of neglect and restoration work needed for Venezuela's oil industry. Energy Secretary Chris Wright said the agreement aims to increase confidence for private businesses to invest in Venezuela, but critics argue it lacks legitimacy due to its ties with a 'dictatorship' that has clung to power through violence.