US oil giant Chevron confirms it will expand operations in Venezuela

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🗞️ Driving the news: Chevron confirmed Wednesday it will expand in Venezuela, having been assigned additional acreage in the Orinoco Belt
• The company plans to invest more than $7 billion over five years, aiming to more than double production to around 600,000 barrels a day
• The move follows a US deal to develop Venezuelan reserves that gives the Pentagon a share of profits
• US Energy Secretary Chris Wright attended a Caracas ceremony where Chevron, Eni and other firms signed agreements with the government

🔭 The context: Venezuela holds the world's largest proven reserves at over 303 billion barrels, ahead of Saudi Arabia's 267 billion, but degraded infrastructure and sanctions hold output to just over 1 million barrels daily
• Chevron has operated there since 1923 and it is the only US major with a significant presence
• The White House is partnering with North American Blue Energy Partners, granted 100-year rights over 17 fields holding 65 billion barrels
• The Cato Institute's Ian Vásquez notes Venezuela's constitution requires National Assembly approval, which has not occurred; the assembly voiced support Tuesday without debate or vote

🌍 Why it matters for the planet: Orinoco Belt crude is extra-heavy, requiring energy-intensive extraction and upgrading that place it among the most carbon-intensive oil produced anywhere
• Committing $7 billion to double output there builds long-lived assets on a century-scale rights framework, locking in production well past the dates by which climate pathways require oil demand to fall
• Bringing 65 billion barrels of stranded reserves back toward development runs directly against the constrained-supply logic underpinning transition scenarios

⏭️ What's next: Analysts question the timeline as NYU's Amy Jaffe estimates two to four years for new greenfield facilities in the Orinoco, longer where pipelines and support infrastructure are absent
• Exxon called Venezuela uninvestable in January and says nothing has changed
• Legal durability remains uncertain, with Vásquez arguing a future Venezuelan democracy would contest the arrangement

💬 One quote: "Chevron's history in Venezuela spans more than a century, and our expanded position reflects our confidence in the country's deep resource potential" — Mike Wirth, CEO, Chevron.

📈 One stat: More than $7 billion of planned investment over five years, targeting about 600,000 barrels a day.

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