Chevron Plans $7 Billion Investment to Double Venezuela Oil Production

Chevron confirmed it will expand operations in Venezuela, planning to invest more than $7 billion over the next five years to more than double its current production to about 600,000 barrels a day.

This expansion follows President Donald Trump's announcement of an ambitious deal to develop Venezuela's oil reserves and give the Pentagon a stake in the profits. Chevron has been assigned additional acreage in the Orinoco Belt, where it already has active operations. Chevron CEO Mike Wirth stated the expanded position reflects confidence in the country's deep resource potential, noting Chevron's history in Venezuela spans over a century.

Venezuela holds the world's largest proven oil reserves, totaling over 303 billion barrels, according to OPEC's 2025 Annual Statistical Bulletin. Despite this, its daily production is just over 1 million barrels, less than Saudi Arabia's 10 million to 11 million barrels or the US's almost 14 million barrels per day. Venezuela's energy infrastructure is severely degraded due to years of underinvestment, sanctions, and power cuts.

Investment banks are tempering the White House’s enthusiasm, with UBS warning that crude output will take years to recover and will have limited short-term impact on prices. Specialist consultancy Rystad Energy estimates Venezuela’s market will take decades to recover, requiring an $85 billion investment to regain historical peak production by 2050. US Energy Secretary Chris Wright said production would more than double in the coming years.

Political uncertainty in Venezuela is a primary factor, with both opposition and radical Chavismo sectors criticizing the deal. Chevron was the only US oil company with a major presence in Venezuela after other major peers left. Venezuela also signed agreements with Eni and GE in the presence of the US Secretary of Energy.