Building on early assessments of hurdles for U.S. oil majors after Maduro's capture, Chevron—the sole major American firm operating in Venezuela—is positioned to capitalize following the U.S. invasion of Caracas, which killed at least 80 and led to the president's kidnapping. Extensive lobbying secured license extensions amid sanctions shifts, enabling potential access to vast reserves despite infrastructure woes and political risks.
The U.S. invasion last Saturday intensified the crisis over Venezuela's oil, with President Trump reiterating from Mar-a-Lago that U.S. companies would extract substantial wealth from the country's resources—the world's largest proven reserves.
Chevron, partnering with PDVSA since 2007, maintained its foothold through persistence. CEO Mike Wirth called it a 'long game.' After Trump's return, initial license revocations were reversed following nearly $4 million in lobbying and a March Oval Office meeting with Wirth. A July license allowed resumed operations, generating $3.6 billion last quarter from 100,000-150,000 barrels daily of heavy crude suited to Chevron's refineries.
The $53 billion Hess acquisition on July 18 added a 30% stake in Guyana's oilfields, complicated by Venezuela's border claims. Challenges persist: PDVSA's $150 billion debt (including $60 billion to China), decayed infrastructure needing hundreds of billions to rebuild, and instability. Brookings' Samantha Gross warned of 'huge aboveground risks.'
Trump announced on Truth Social transferring 30-50 million barrels of sanctioned oil to U.S. control, with the Energy Department planning global sales and proceeds to U.S. accounts to push prices toward $50 per barrel. Energy Secretary Chris Wright anticipates rapid Chevron expansion. Senate Democrats probe pre-invasion oil firm contacts amid concerns over taxpayer costs. Analysts like David Mares caution that lingering instability and sub-$60 prices, amid renewable shifts, cloud profitability.
