Chevron Corporation, one of the United States' leading oil companies, has announced it will maintain its current level of capital expenditures in Venezuela this year despite public appeals from President Donald Trump to increase investment in the country’s oil sector. This stance was communicated to the Financial Times on Friday by Chevron's Chief Financial Officer, Eimear Bonner.
Bonner clarified that Chevron is presently producing around 250,000 barrels of oil per day in Venezuela and that there is an opportunity to amplify production by up to 50% in the next 18 to 24 months, contingent upon receiving additional authorizations from the U.S. government. Importantly, she emphasized that there is no intended alteration to the firm’s overall capital expenditure guidance for the year specifically related to Venezuela. Chevron's projected capital spending for 2026 sits in the range of $18 billion to $19 billion.
CEO Mike Wirth added that Chevron intends to sustain its engagement with both U.S. and Venezuelan authorities to pursue common energy objectives, highlighting the company's longstanding presence and investment in Venezuela. Chevron remains the only American oil producer actively operating in Venezuelan territory, underscoring both its strategic positioning and the complexities of operating in the region amid geopolitical considerations.
Financially, the Houston-based company recently reported fourth-quarter earnings that, while lower year over year, surpassed Wall Street expectations. Adjusted earnings per share for the final quarter of the year were $1.52, compared to $2.06 in the same period the previous year, with analysts having anticipated an EPS of $1.45. Chevron’s revenue experienced a 10% decline year on year, amounting to $46.87 billion.
The backdrop for Chevron’s cautious investment stance includes a broader revitalization of interest in Venezuela’s oil sector following the displacement of former President Nicolás Maduro. The Trump administration’s initiatives appear to have influenced the outlook on market dynamics, prompting major firms such as Chevron and ExxonMobil to reevaluate their investment prospects.
Despite President Trump’s public encouragement, Treasury Secretary Scott Bessent indicated that the major oil companies have shown reluctance toward increasing their commitments to Venezuela. Contrastingly, non-U.S. firms such as Dutch trader Vitol and Singapore-based Trafigura were reported as some of the first businesses to secure deals within the Venezuelan oil industry; they have obtained preliminary licenses authorizing negotiation and export of Venezuelan crude oil.
In parallel developments, Secretary of State Marco Rubio stated during a Senate Foreign Relations Committee session that the Trump administration is preparing to permit Venezuela to sell oil currently under U.S. sanctions. The proceeds from these sales would initially be allocated to fundamental government services including policing and healthcare, with oversight by Washington. According to Rubio, interim Venezuelan leaders will provide monthly budgets detailing funding requirements as part of this managed approach.
On the financial market front, Benzinga’s Edge Rankings place Chevron in the 79th percentile for value, while its momentum score is in the 57th percentile, reflecting a mixed but solid performance relative to peers. Data from Benzinga Pro shows Chevron’s stock price increased by 9.51% over the past year, with a recent closing price of $171.19 after a 0.74% gain on the preceding Thursday.
Chevron's deliberate decision to hold steady on Venezuela capital spending despite executive calls for increased investment reflects a measured approach, balancing existing production capabilities, regulatory approval processes, and geopolitical factors. The company’s ongoing dialogue with governments underlines a strategic commitment to optimize its presence within a challenging yet resource-rich market.