Chevron's Strategic Victory in Venezuela

Following a recent military operation in Venezuela that resulted in the capture of President Nicolás Maduro, Chevron finds itself uniquely positioned to capitalize on the country's vast oil reserves. The company, the only major U.S. firm still operating in the nation, spent nearly $4 million lobbying the Trump administration to maintain its foothold despite sanctions.

CEO Mike Wirth met directly with President Trump and top officials to argue for continued operations. The strategy proved successful when the administration issued a new license allowing Chevron to resume operations, resulting in record-breaking production and $3.6 billion in earnings in the last reported quarter. Additionally, Chevron recently acquired Hess Corporation for $53 billion, gaining access to major oil reserves in neighboring Guyana.

On Saturday, U.S. forces in Caracas killed at least 80 people and kidnapped Venezuelan President Nicolás Maduro. President Donald Trump, speaking from his Mar-a-Lago resort, framed the country's future as belonging to "very large United States oil companies" that would soon extract "a tremendous amount of wealth out of the ground."

Venezuela possesses the largest proven oil reserves on Earth, estimated at approximately 300 billion barrels, representing roughly 17 percent of global totals. However, due to years of political turmoil and U.S. sanctions, the country currently accounts for barely 1 percent of global crude production.

According to Samantha Gross, director of the Energy Security and Climate Initiative at Brookings, while the oil reserves are known to exist, "the above-ground risks are huge." Despite these challenges, Chevron has maintained a continuous presence in the country since 2007, when other major oil giants withdrew following former President Hugo Chávez's nationalization of the industry.

Chevron distinguished itself from other international oil companies by accepting minority partnership status under the state oil company's terms. This decision allowed the firm to preserve its infrastructure, personnel, and legal foothold in the country. These assets have now provided significant geopolitical leverage in the ongoing tug-of-war between the United States, China, and the Maduro government.

CEO Mike Wirth explicitly described this approach in November at a U.S.-Saudi investment summit in Washington, stating, "We play a long game." This strategy positioned Chevron advantageously following the recent invasion. The company's leadership maintains deep ties to Republican circles and a history of substantial GOP donations.

When Trump returned to office, his administration initially revoked Biden-era licenses that had allowed Chevron to operate despite existing sanctions. The company was instructed to stop production by April, yet executives made no attempt to:

• Wrap up existing contracts
• Pull out personnel
• Wind down supply chains

Francisco Monaldi, director of the Latin American energy program at Rice University, noted in March that it appeared "Chevron is very confident it can obtain an extension."

Behind the scenes, Chevron executives engaged in intensive lobbying efforts, spending almost $4 million in the first half of the year to maintain their Venezuelan foothold. In March, CEO Mike Wirth joined President Trump in the Oval Office to discuss potential modifications or extensions to Chevron's license. The President reportedly found Wirth's television appearances entertaining and regularly called him following cable news segments.

Following the Oval Office meeting, Wirth conducted private sit-downs with key administration officials, including Secretary of State Marco Rubio, Treasury Secretary Scott Bessent, and National Security Council staffers. He made the case for his company's continued presence in the country.

By July, these efforts yielded results. The administration issued a new license permitting Chevron to resume operations in Venezuela. The company subsequently achieved record-breaking production and earned $3.6 billion in its last reported quarter. While Venezuelan production accounts for only 100,000 to 150,000 barrels daily—a small fraction of Chevron's total output—the heavy crude is ideally suited for the company's Gulf Coast refineries, helping those facilities run more efficiently while increasing supplies and reducing costs.

Just before securing the renewed Venezuelan license, Chevron completed its acquisition of Hess Corporation, one of the largest independent U.S. oil producers, in a deal valued at $53 billion. The transaction faced significant regulatory hurdles when the Federal Trade Commission initially banned Hess CEO John Hess from joining Chevron's board, alleging collusion with OPEC representatives to fix oil prices.

The reversal of this decision coincided with the Hess family's history as major Republican donors, having contributed more than $1 million to Trump's first inauguration. Chevron itself donated $2 million to the President's 2025 ceremony. President Trump referred to John Hess as "a friend of mine for a long time," and Hess successfully petitioned the FTC to revisit its decision.

The acquisition grants Chevron entry into what analysts consider the decade's most consequential oilfield located in Guyana, Venezuela's neighbor. Hess held a 30 percent stake in the project, which began when Exxon Mobil announced a massive offshore discovery in 2015. This development transformed Guyana—a nation of fewer than one million people—into a major petroleum player.

Additionally, Trump's actions removed a significant political obstacle to the Guyana project. Venezuelan President Maduro had repeatedly challenged Guyana's control over the offshore area, escalating attacks in 2019 as production ramped up and Venezuela's own industry faltered. Maduro sent naval ships into Guyanese waters and vowed to take "all necessary actions" to stop development—rhetoric that mirrored Trump's justification for his own military actions against Maduro.