KEY POINTS
- Chevron remains the only major foreign oil company operating in Venezuela
- US sanctions and rising tensions have reshaped the country’s oil exports
- Chevron’s long term strategy carries opportunity and political risk
The decision by Chevron to remain in Venezuela through years of political turmoil, sanctions and economic collapse is now placing the US oil major at the centre of one of the world’s most consequential energy standoffs.
After nearly twenty years of navigating shifting relations between Washington and Caracas, Chevron is the only global oil company still producing crude in Venezuela, home to the world’s largest proven oil reserves. As tensions intensify between the United States and President Nicolás Maduro’s government, that position has become both a strategic advantage and a serious liability.
The Houston based company produces about 200,000 barrels of oil a day through joint ventures with state owned Petróleos de Venezuela, exporting its share mainly to US Gulf Coast refineries designed to process heavy crude. Tanker tracking data shows Chevron was preparing shipments of Venezuelan oil even as Washington escalated its rhetoric and military posture toward the country.
Energy analysts say Chevron’s presence makes it valuable to both governments. Venezuela relies on the company’s technical expertise and export channels to generate badly needed revenue. US policymakers, despite public criticism, continue to see Chevron as a stabilising force that prevents rival powers from filling the vacuum.
Francisco Monaldi, director of Latin American energy policy at Rice University, said the company’s position gives it leverage in almost any political outcome. He said Chevron is one of the few actors that could help restart or expand production if diplomatic or political conditions shift.
The broader Venezuelan oil industry is struggling. US sanctions and maritime enforcement have disrupted exports, cyber incidents have hit infrastructure and air travel in and out of the country has slowed amid security warnings. State oil firm PDVSA faces the prospect of shutting wells as storage fills and buyers disappear.
Chevron’s survival in the country traces back to decisions made after Venezuela tightened state control over oil in the early 2000s. While rivals such as ExxonMobil and ConocoPhillips exited, Chevron chose to adapt, accepting minority stakes and maintaining relationships with successive governments.
Approach Draws Criticism from US Lawmakers
That approach has drawn criticism from US lawmakers who accuse the company of indirectly propping up an authoritarian regime. Hardliners within Venezuela also view Chevron as a symbol of foreign influence in a strategic industry.
Chevron says it operates in compliance with US law and that its activities support economic stability while maintaining energy security. Executives acknowledge the scrutiny but argue that long term engagement is essential in resource rich regions.
As pressure on Maduro increases and oil markets remain volatile, Chevron’s calculated patience in Venezuela may yet deliver significant rewards or expose the company to its greatest geopolitical test.
