Chevron Global Technology Services Co. logos are seen at an administrative office in Caracas in 2022. (Yuri Cortez \/ AFP via Getty Images) <\/p>\n
As a stunned world processes the U.S. government\u2019s sudden intervention in Venezuela \u2014 debating its legality, guessing who the ultimate winners and losers will be \u2014 a company founded in California with deep ties to the Golden State could be among the prime beneficiaries.<\/p>\n
Venezuela has the largest proven oil reserves on the planet. Chevron, the international petroleum conglomerate with a massive refinery in El Segundo and headquartered, until recently, in San Ramon, is the only foreign oil company that has continued operating there through decades of revolution.<\/p>\n
Other major oil companies, including ConocoPhillips and Exxon Mobil, pulled out of Venezuela in 2007 when then-President Hugo Ch\u00e1vez required them to surrender majority ownership of their operations to the country\u2019s state-controlled oil company, PDVSA.<\/p>\n
But Chevron remained, playing the \u201clong game,\u201d according to industry analysts, hoping to someday resume reaping big profits from the investments the company started making there almost a century ago.<\/p>\n
Looks like that bet might finally pay off.<\/p>\n
In his news conference Saturday, after U.S. Special Forces snatched Venezuelan President Nicol\u00e1s Maduro and his wife in Caracas and extradited them to face drug-trafficking charges in New York, President Trump said the U.S. would \u201crun\u201d Venezuela and open more of its massive oil reserves to American corporations.<\/p>\n
“We’re going to have our very large U.S. oil companies, the biggest anywhere in the world, go in, spend billions of dollars, fix the badly broken infrastructure, the oil infrastructure, and start making money for the country,” Trump said during a news conference Saturday.<\/p>\n
While oil industry analysts temper expectations by warning it could take years to start extracting significant profits given Venezuela\u2019s long-neglected, dilapidated infrastructure, and everyday Venezuelans worry about the proceeds flowing out of the country and into the pockets of U.S. investors, there\u2019s one group who could be forgiven for jumping with unreserved joy: Chevron insiders who championed the decision to remain in Venezuela all these years.<\/p>\n
But the company\u2019s official response to the stunning turn of events has been poker-faced.<\/p>\n
“Chevron remains focused on the safety and well-being of our employees, as well as the integrity of our assets,” spokesman Bill Turenne emailed The Times on Sunday, the same statement the company sent to news outlets all weekend. “We continue to operate in full compliance with all relevant laws and regulations.”<\/p>\n
Turenne did not respond to questions about the possible financial rewards for the company stemming from this weekend’s U.S. military action.<\/p>\n
Chevron, which is a direct descendant of a small oil company founded in Southern California in the 1870s, has grown into a $300-billion global corporation. It was headquartered in San Ramon, just outside of San Francisco, until executives announced in August 2024 that they were fleeing high-cost California for Houston.<\/p>\n
Texas’ relatively low taxes and light regulation have been a beacon for many California companies, and most of Chevron’s competitors are based there.<\/p>\n
Chevron began exploring in Venezuela in the early 1920s, according to the company\u2019s website, and ramped up operations after discovering the massive Boscan oil field in the 1940s. Over the decades, it grew into Venezuela\u2019s largest foreign investor.<\/p>\n
The company held on over the decades as Venezuela\u2019s government moved steadily to the left; it began to nationalize the oil industry by creating a state-owned petroleum company in 1976, and then demanded majority ownership of foreign oil assets in 2007, under then-President Hugo Ch\u00e1vez.<\/p>\n
Venezuela has the world\u2019s largest proven crude oil reserves \u2014 meaning they’re economical to tap \u2014 about 303 billion barrels, according to the U.S. Energy Information Administration.<\/p>\n
But even with those massive reserves, Venezuela has been producing less than 1% of the world\u2019s crude oil supply. Production has steadily declined from the 3.5 million barrels per day pumped in 1999 to just over 1 million barrels per day now.<\/p>\n
Currently, Chevron’s operations in Venezuela employ about 3,000 people and produce between 250,000 and 300,000 barrels of oil per day, according to published reports.<\/p>\n
That\u2019s less than 10% of the roughly 3 million barrels the company produces from holdings scattered across the globe, from the Gulf of Mexico to Kazakhstan and Australia.<\/p>\n
But some analysts are optimistic that Venezuela could double or triple its current output relatively quickly \u2014 which could lead to a windfall for Chevron.<\/p>\n
The Associated Press contributed to this report.<\/p>\n