Chevron’s History and Current Operations in Venezuela
Chevron, a US-based petroleum company, is the sole foreign entity permitted to exploit Venezuela’s oil reserves, the largest in the world. Despite political tensions between Washington and Caracas, Chevron strives to maintain its privileged position.
Chevron’s predecessor, Gulf Oil, established a presence in Venezuela in 1923 through its subsidiary, Venezuelan Gulf Oil Company. The company began oil exploration near Lake Maracaibo and subsequently in new fields such as Urumaco (1926) and Boscan (1946). Gulf Oil merged with Standard Oil of California in 1984, forming Chevron.
Currently, Chevron extracts oil from four fields and gas from a marine deposit, covering approximately 30,000 hectares. This operation is conducted in collaboration with the state-owned PDVSA and its affiliates, employing around 3,000 people.
Venezuela’s Oil Reserves
According to the International Energy Agency (IEA), Venezuela held about 303,000 million barrels of oil in 2023, accounting for 17% of the world’s reserves.
US Sanctions and Chevron’s Continued Operations
The “total blockade” of Venezuelan oil, enforced since 2019, was partially lifted in 2023 with the issuance of licenses for operations within Venezuela. However, President Donald Trump revoked all licenses in mid-2025 before granting an exception to Chevron.
A sector expert asserts that Trump’s recent decisions do not affect Chevron’s activities. The company maintains its presence stabilizes the local economy, the region, and US energy security, adhering to laws and the “sanctions framework established by the US government,” Chevron stated.
Chevron’s Contribution to Venezuela’s Oil Production
Stephen Schork, an analyst at Schork Group, reports that Venezuela’s total production is between 800,000 and 900,000 barrels per day, down from over 3 million at its peak. Chevron generates around 10% of Venezuela’s production, equivalent to 150,000 to 200,000 barrels per day, all of which are exported to the US.
However, this oil is “heavy and dirty,” making it difficult to transport via pipelines without diluents. Due to the embargo, Caracas must sell its oil on the black market at lower prices, primarily to Asia.
The new US blockade should significantly reduce these illicit exports, potentially by 50%, according to experts.
US Interest in Venezuela’s Oil
The US has refineries along the Gulf of Mexico designed specifically to process Venezuelan oil, which is low in quality. This oil is primarily transformed into diesel or byproducts like asphalt rather than gasoline for cars.
“The US does well without Venezuelan oil,” Schork notes. “It doesn’t need this oil.”
If desired, it’s for “political reasons, to oust a socialist/communist government acting with many ill-intentioned actors,” he explains. The US aims to prevent the vacuum left by its departure from being filled by countries like China and Russia, which don’t share its values, at both political and environmental levels, according to a source close to the matter.
