Chevron Shares Rise More Than 2% on Venezuela Oil Investment Headlines

  • Chevron shares rose more than 2% in Monday premarket trading on proposed U.S.-backed Venezuelan oil investment.
  • The venture involves 17 fields, 65 billion barrels and more than $100 billion in expected investment, with funding still unclear.
  • Rodríguez targets output above 1.5 million barrels per day, versus about 1.25 million currently and nearly 3.5 million in the late 1990s.

Chevron Corporation shares rose more than 2% in Monday premarket trading as investors assessed a proposed U.S.-backed expansion of Venezuela’s oil industry. President Donald Trump has presented a venture covering 65 billion barrels and 17 oil fields as a way to lower gasoline prices, replenish the Strategic Petroleum Reserve and increase Venezuelan output, although funding, infrastructure, contract and political uncertainties could delay meaningful supply growth for years. Venezuelan acting President Delcy Rodríguez described a 25-year agreement targeting production of 1.5 million barrels per day from about 1.25 million, with more than $100 billion in expected U.S. investment and roughly $209 billion in potential Venezuelan government revenue over 25 years at $65 per barrel, including about $19 per barrel directly to the state. Chevron, the only U.S. oil major operating in Venezuela, is negotiating to add two heavy-oil fields, while GeoPark, Hunt Oil, Repsol, Eni, Shell and BP are linked to other proposed or signed agreements. The reported framework is not fully reconciled with earlier descriptions of 100-year concessions, 63 billion barrels of proven reserves, a U.S. government-private operator joint venture and a 55% U.S. participation share. Analysts and investors remain concerned about unproven resources, legacy claims, unreliable electricity, deteriorated heavy-crude infrastructure, uncertain contracts and the possibility that future U.S. or Venezuelan leaders could abandon the strategy. GasBuddy analyst Patrick De Haan said additional Venezuelan oil could help offset shortages linked to the Iran war but would not immediately affect gasoline prices.

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