KEY POINTS
- Chevron targets 600,000 bpd in Venezuela by 2031.
- Company plans $7 billion Venezuela investment.
- Permian strategy shifts toward stronger cash flow.
Chevron is preparing for a major expansion of its oil production in Venezuela while shifting its U.S. shale operations toward stronger cash generation and pursuing new opportunities in Iraq, the Middle East and power generation.
Chevron Chief Financial Officer Eimear Bonner outlined the company’s plans on Tuesday at the Barclays 40th Annual Energy-Power Conference, describing the oil major as “bigger, better and stronger” than it has ever been.
Chevron currently produces about 280,000 barrels of oil per day in Venezuela, but the company expects that figure to rise to around 600,000 barrels per day by about 2031.
The planned expansion comes as the administration of U.S. President Donald Trump creates room for greater American participation in Venezuela’s oil industry, potentially giving Chevron a larger role in developing the country’s substantial petroleum resources.
Chevron plans to invest about $7 billion in gross capital over the next five years to support its Venezuelan operations. The company also expects to more than double the number of drilling rigs operating in the country.
Bonner said production could eventually reach a plateau of between 600,000 and 700,000 barrels per day and remain at those levels for five to 10 years.
The economics of the Venezuelan assets are also attractive to Chevron, with total costs estimated at below $20 per barrel. The company has further strengthened its position by securing additional acreage, including the Carabobo 1 and 2 blocks.
Chevron also secured improved fiscal terms and stronger legal protections for its operations, factors that could support the company’s long-term investment plans.
Despite the expected increase in production, Bonner said Chevron does not anticipate the need for major infrastructure projects to accommodate the expansion.
Permian operations to focus on cash
Chevron is also changing its approach to the Permian Basin, one of the most important oil-producing regions in the United States.
After increasing Permian production to about 1 million barrels per day, the company is now placing greater emphasis on generating free cash flow rather than pursuing rapid production growth.
Bonner said Chevron is currently drilling at roughly twice the pace it was two years ago. At the same time, the company expects capital expenditure intensity in 2026 to be about 25% lower than in 2025.
Chevron believes there is still room to reduce costs and improve returns from its shale operations.
The company plans to achieve further efficiencies by applying technology, improving equipment reliability and transferring successful operating practices across its shale portfolio.
