Chevron speeds ahead in Venezuela while Exxon urges caution with a ‘little pinch of salt’

Chevron is aggressively expanding its presence in Venezuela, aiming to double its oil output within five years by investing $7 billion, while ExxonMobil CEO Darren Woods has cautioned investors to remain cautious due to ongoing reforms required in the Venezuelan oil sector. Exxon has previously labeled Venezuela as "uninvestible," a statement that reportedly frustrated President Donald Trump.

Despite this, Chevron has forged a deal with the Maduro regime and continues to be the leading private oil producer in the country. ExxonMobil's CEO reiterated that significant changes are needed before any major entry into Venezuela, and while he sees potential in the long-term, he does not expect the company to rush into the market.

Chevron's new deal with Venezuela will see the company increase its daily oil production from 300,000 barrels to 600,000 barrels by 2031, marking a 20% increase this year alone. The CEO, Mike Wirth, highlighted that Chevron's familiarity with the Venezuelan geology and infrastructure gives the company an advantage and that the deal will be largely self-funding.

Chevron's CEO emphasized the importance of having the support of the local population to manage the risks associated with the venture. Overall, Venezuela's oil industry has seen a resurgence in production, with output now exceeding 1.2 million barrels daily after peaking at nearly 4 million barrels in the past.