Photo: FREDERIC J. BROWN / AFP / Getty Images
Chevron, the only U.S. oil company with a major presence in Venezuela, announced plans on Wednesday (September 2) to double its oil production in the country over the next five years. The company confirmed it will invest $7 billion to increase production to approximately 600,000 barrels per day. This expansion follows President Donald Trump's recent deal to develop Venezuelan oil fields, which contain about 65 billion barrels of petroleum.
Mike Wirth, Chevron's CEO, stated, "We are strengthening a portfolio that we believe can deliver attractive low-cost oil growth." The company's history in Venezuela dates back over a century, and it currently operates in the Orinoco Belt through joint ventures like Petroindependencia and Petropiar, S.A.
The decision to expand comes amid Venezuela's vast proven reserves, totaling more than 303 billion barrels, according to OPEC's 2025 Annual Statistical Bulletin. However, political instability and international sanctions have limited the country's current output to about 1.1 to 1.2 million barrels per day.
President Trump has been advocating for increased U.S. involvement in Venezuela's oil industry, viewing it as a step away from reliance on Middle Eastern oil. The agreement, which includes a Pentagon stake in the profits, has faced skepticism due to Venezuela's dilapidated oil infrastructure. Experts warn that it will take years to revive the industry and require significant investment.
Chevron's expansion plans are part of a broader strategy to secure Western crude supply lines and potentially lower U.S. gasoline prices. However, the national average price for a gallon of regular gasoline recently rose to $4.12, a significant increase from the previous year.