U.S. oil giant Chevron has confirmed plans to expand its operations in Venezuela, marking a major new investment in a country that holds the world’s largest proven oil reserves. The announcement follows President Donald Trump’s push to increase U.S. involvement in Venezuela’s energy industry through a broader agreement aimed at developing the country’s oil resources.
Chevron Plans More Than $7 Billion Investment
Chevron said it has been assigned additional acreage in Venezuela’s Orinoco Belt, one of the world’s largest oil producing regions and an area where the company already operates.
The company plans to invest more than $7 billion over the next five years. Its goal is to more than double its current Venezuelan production to about 600,000 barrels of oil per day.
Chevron is currently the only major U.S. oil company with a significant presence in Venezuela. The company has operated in the country since 1923.
“Chevron’s history in Venezuela spans more than a century, and our expanded position reflects our confidence in the country’s deep resource potential,” CEO Mike Wirth said in a prepared statement.
Venezuela Holds the World’s Largest Oil Reserves
Venezuela has more proven crude oil reserves than any other country.
According to OPEC’s 2025 Annual Statistical Bulletin, Venezuela has more than 303 billion barrels of proven crude oil reserves. Saudi Arabia ranks second with about 267 billion barrels.
However, Venezuela produces far less oil than other major energy producers.
The country’s oil infrastructure has suffered from years of neglect, while international sanctions have also limited the industry’s ability to operate and attract investment. Venezuela currently produces just over 1 million barrels per day.
By comparison, Saudi Arabia produces between 10 million and 11 million barrels per day, while the United States produces nearly 14 million barrels daily.
Trump Pushes U.S. Companies Back Into Venezuela
Chevron’s expansion comes as the Trump administration works to bring more American businesses into Venezuela.
The White House confirmed that it is partnering with North American Blue Energy Partners as part of Trump’s broader effort to develop Venezuela’s oil industry. The plan would also give the Pentagon a financial stake in profits generated from some of the country’s oil reserves.
“What we’re doing is increasing the confidence for private businesses to come do deals in Venezuela, directly with the government of Venezuela,” Energy Secretary Chris Wright said during an interview Wednesday on CNBC.
Trump has repeatedly suggested that other major American oil companies could return to Venezuela.
“We have Exxon going in, we have Chevron going in. We have our big oil companies going in,” Trump said in January.
However, Chevron remains the only major U.S. oil company to confirm such an expansion. Exxon Mobil CEO Darren Woods described Venezuela as “uninvestable” earlier this year, and an Exxon spokesperson said this week that “nothing has changed.”
Questions Surround the Oil Agreement
Despite Chevron’s commitment, the broader agreement has raised legal and political questions.
Venezuela’s acting president, Delcy Rodríguez, has reportedly granted Chevron 100-year rights covering 17 oil fields containing an estimated 65 billion barrels of reserves.
Critics have questioned whether Rodríguez has the authority to approve such an arrangement. Venezuela’s constitution requires agreements of this type to receive approval from the National Assembly, which has not happened.
Ian Vásquez, vice president for international studies at the Cato Institute, questioned whether the agreement would survive future political changes.
“The deal lacks legitimacy since it was agreed to with a dictatorship that has clung to power for decades through violence and by committing what was probably the largest electoral fraud in Latin American history in 2024,” Vásquez wrote.
“The agreement was also reached under overwhelming pressure, military and otherwise, from the United States. As such, any future Venezuelan democracy will question the deal, thus undermining confidence in the current arrangement.”
Rebuilding Venezuela’s Oil Industry Could Take Years
Even with billions of dollars in new investment, Venezuela’s oil industry cannot be restored quickly.
Years of poor maintenance have left pipelines, processing facilities and other energy infrastructure in need of major repairs. Energy experts say rebuilding production capacity could take several years.
“It could take 2 to 4 years to get new greenfield facilities online in the Orinoco region,” Amy Jaffe, director of the Global Energy, Climate, and Sustainability Lab at New York University, said in an email. “Other places where there is no pipeline and other kinds of support infrastructure could take longer.”
The timeline could limit how quickly additional Venezuelan production affects the global oil market or fuel prices in the United States.
Chevron Makes a Long Term Bet on Venezuelan Oil
Chevron’s planned investment represents one of the clearest signs yet that American energy companies could play a larger role in Venezuela’s oil industry. With more than $7 billion expected to be invested over five years, Chevron hopes to raise production to roughly 600,000 barrels per day. Still, damaged infrastructure, political uncertainty and questions about the oil agreement could determine whether Venezuela can turn its enormous reserves into significantly higher production.
