Chevron's Unusual Sway in Socialist-Led Venezuela Allows It to Gain from Crisis

Amid escalating tensions between Washington and Caracas, American oil giant Chevron has defied expectations by maintaining a stronghold in Venezuela's vast oil reserves. President Nicolás Maduro has welcomed the company, and opposition leaders have criticized its decision to do business with the autocratic leader. Chevron's operations have been a stabilizing force for Venezuela's economy, accounting for nearly a quarter of the country's oil production. The company's expertise in reviving wells in Venezuela's Orinoco Belt has provided financing and technology that has helped the country spend revenues on basic necessities like food and medicine.

Key Takeaways:

• Chevron has been in Venezuela since 1923 and has become a pillar of the country's economy.
• The company's oil exports account for nearly a quarter of Venezuela's oil production.
• In the last two years, Chevron has accounted for up to 80 percent of Venezuela's oil output growth.
• Chevron's operations have allowed Venezuelan officials to spend oil revenues on basic necessities like food and medicine.
• Economists say Chevron's presence is preventing Venezuela from sliding back into a humanitarian crisis that led millions to flee the country.
• Chevron's prominence in Venezuela's economy could give it a competitive advantage if Maduro's government falls.
• The company has hired top Trump supporter Brian Ballard's lobbying firm to maintain good relations with the Trump administration.
• Chevron's operations have been criticized by opposition leaders who see it as bolstering autocratic rule.
• The company has faced production interruptions, Venezuela's debt of $3 billion, and jailing of its employees over contract disputes.
• Chevron's success in Venezuela is due in part to its technical expertise in the Orinoco Belt.

Statistics:

• Venezuela's oil exports climbed to a five-year high in September.
• Oil revenues account for 90 percent of Venezuela's budget.
• Chevron has accounted for up to 80 percent of Venezuela's oil output growth in the last two years.
• Venezuela's oil exports to the US plunged 90 percent in July after a license cancellation.
• Chevron's operations account for nearly a quarter of Venezuela's oil production.

Sources:

• The New York Times
• Francisco J. Monaldi, Venezuelan oil expert at Rice University
• Francisco Rodríguez, Venezuelan economist
• Willian Rodríguez, pro-Maduro legislator
• Pedro Mario Burelli, former board member of Petróleos de Venezuela
• Edward Chow, former Chevron executive
• Laura Loomer, key Trump supporter and social media influencer