Crude oil prices surged as Venezuelan President Nicolas Maduro was captured and extradited to the United States, attracting significant investor interest in the energy sector. Venezuela produces approximately 1 million barrels of oil daily and holds the largest oil reserves globally, with an estimated 300 billion barrels representing nearly 20% of the world’s supply.
Chevron (CVX) is the only major U.S. oil company currently authorized to operate in Venezuela, maintaining its joint ventures despite nationalization issues affecting other firms. President Trump has indicated Chevron could lead efforts to rehabilitate Venezuela’s declining oil infrastructure. This could potentially increase Chevron’s supply to U.S. refineries that prefer heavy crude oil, spurring a 5% stock increase on Monday, with earnings projections for fiscal 2025 now at $7.34 per share.
In addition, oil-field services demand is expected to rise, with companies like Halliburton (HAL) and Valero Energy (VLO) also positioned to benefit. Halliburton saw over a 7% stock increase, while Valero is reportedly in talks with Chevron regarding the resumption of Venezuelan crude shipments to U.S. refineries.
