California-Venezuela Ties: Chevron’s Century-Long Connection
- Special Forces apprehended Venezuelan President Nicolás Maduro and his wife in Caracas, extraditing them to New York to face drug-trafficking charges.
- Venezuela holds approximately 303.8 billion barrels of proven oil reserves, exceeding those of Saudi Arabia, according to the U.S.
- ConocoPhillips and Exxon Mobil, among others, were compelled to relinquish majority ownership of their Venezuelan operations to Petróleos de Venezuela, S.A.
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Chevron Poised to Benefit from U.S. Intervention in Venezuela
Table of Contents
Updated January 5, 2026, at 9:07 PM PST
What Happened?
On an unexpected Saturday, U.S. Special Forces apprehended Venezuelan President Nicolás Maduro and his wife in Caracas, extraditing them to New York to face drug-trafficking charges. president Trump subsequently announced the U.S. would assume operational control of Venezuela, with plans to open its substantial oil reserves to American corporations. This intervention dramatically shifts the geopolitical landscape and potentially unlocks significant economic opportunities for U.S. energy companies.
Chevron’s Unique Position
Venezuela holds approximately 303.8 billion barrels of proven oil reserves, exceeding those of Saudi Arabia, according to the U.S. Energy Information Management (EIA).While most major oil companies exited Venezuela in 2007 following President Hugo Chávez’s nationalization policies, Chevron remained. This strategic decision, described by industry analysts as playing the “long game,” has positioned Chevron as a potential major beneficiary of the current situation.
ConocoPhillips and Exxon Mobil, among others, were compelled to relinquish majority ownership of their Venezuelan operations to Petróleos de Venezuela, S.A. (PDVSA), the state-owned oil company. Chevron, though, continued operations, maintaining a crucial foothold in the country’s oil sector.
| Company | Venezuela Operations (2007) | Current Status (as of Jan 5, 2026) |
|---|---|---|
| Chevron | continued operations | Poised for expanded investment and production |
| ConocoPhillips | Exited Venezuela | Seeking re-entry opportunities |
| Exxon mobil | Exited Venezuela | Seeking re-entry opportunities |
Trump’s Promise of American Investment
During his proclamation, President Trump stated the U.S. would “run” Venezuela and facilitate the entry of large American oil companies to revitalize the country’s dilapidated oil infrastructure. He projected billions of dollars in investment and anticipated significant profits for the U.S. We’re going to have our very large U.S. oil companies, the biggest anywhere in the world, go in, spend billions of dollars, fix the badly broken infrastructure, the oil infrastructure, and start making money for the country,
Trump saeid.
The Venezuelan oil industry has suffered from years of mismanagement, underinvestment, and political instability. PDVSA’s production has plummeted from a peak of over 3 million barrels per day in the 1990s to approximately 700,000 barrels per day in recent years, according to reuters. Restoring Venezuela’s oil production capacity will require substantial capital and expertise.