Chevron Is Pouring Billions Into Venezuela. Here's the 1 Number Investors Should Watch.
A 600,000-barrel production output could unlock billions in additional revenue.
Chevron is planning to invest over $7 billion in Venezuela over the next five years, aiming to expand its presence in the oil-rich Orinoco Belt. However, the key figure investors should watch is not the investment amount but the company's production target of 600,000 barrels per day. This target represents more than double Chevron's 2026 production in Venezuela.
Currently, Chevron's three joint ventures in the country produce about 280,000 barrels of oil per day, a 15% increase from the previous six months. Reaching the 600,000 barrels per day target would add approximately 320,000 barrels of daily production. At an oil price of $70 per barrel, this additional output could generate around $8.2 billion in annual gross oil sales, excluding operating costs, government payments, and Chevron's ownership stakes.
Chevron expects production costs to stay below $20 per barrel, offering substantial profit potential if oil prices remain favorable. Despite political and regulatory risks and the need for infrastructure repair, Chevron's long-standing presence in Venezuela with producing assets and established partnerships could make the investment meaningful.
Globally, Chevron already produces over 4 million barrels of oil equivalent per day, with the additional 320,000 barrels from Venezuela accounting for about 8% of this total.
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