Home / Business and Economy / US Oil Giants Assess Venezuela Amid Political Shifts
US Oil Giants Assess Venezuela Amid Political Shifts
31 Jan
Summary
- Exxon and Chevron seek stable political and legal frameworks.
- Chevron may boost Venezuelan crude processing by 50%.
- Both firms see potential but await regulatory clarity.
U.S. oil majors Exxon Mobil and Chevron are evaluating opportunities in Venezuela's energy sector but are awaiting improved political and legal conditions. Exxon's CEO, Darren Woods, discussed his company's technological capacity to extract heavy crude at lower costs. Chevron's CEO, Mike Wirth, stated his firm could increase its processing of Venezuelan crude by 50% through U.S. refineries.
Despite these discussions, both executives underscored that a stable political environment and robust legal frameworks are necessary before making significant long-term investment decisions. Chevron currently operates as the sole U.S. oil major with ongoing production in Venezuela. The U.S. administration is seeking substantial investment to revitalize the country's oil industry.
While the Treasury's Office of Foreign Assets Control has eased some sanctions, and new legislation aims to empower private producers, definitive commitments from Exxon and Chevron remain on hold. Wirth noted that while operations could expand, longer-term projections are premature due to lingering stability and regulatory questions.
Separately, Exxon's Woods suggested that political shifts in Venezuela could positively impact operations in Guyana, where Exxon and Chevron are partners in the Stabroek oilfield. Portions of this field are currently under force majeure due to a territorial dispute with Venezuela.
