Chevron, the U.S. oil giant, has become a focal point in the rapidly escalating standoff between the United States and Venezuela — a confrontation that’s increasingly centered around Venezuela’s massive crude reserves.
For years, Chevron stood apart from other major oil companies (like ExxonMobil and ConocoPhillips) by maintaining operations in Venezuela long after they exited. Now that President Donald Trump has ordered a “total and complete blockade” on tankers associated with Venezuelan crude and U.S. authorities have already seized multiple vessels, Chevron’s decision looks especially consequential.
Why Chevron’s situation is unusual
Chevron still operates in Venezuela under a special U.S. Treasury license, making it the only major Western oil company active there. Its license allows it to produce and export oil with an agreement alongside Venezuela’s state firm, PDVSA.
Under this arrangement, Chevron does not directly send money to the Venezuelan government but instead shares production, helping the company stay compliant with U.S. sanctions.
Most other tankers are avoiding Venezuelan ports because of the blockade and aggressive U.S. enforcement, which has caused oil prices to rise and shipping activity to slow.
Potential upsides — and big risks
Chevron’s lone status in Venezuela could yield big gains:
If the political conflict leads to Trump ousting Nicolás Maduro’s government, Chevron could be strategically positioned to help rebuild Venezuela’s oil sector and secure new contracts.
If the U.S. and Venezuelan governments find a negotiated way forward, Venezuela will still need to export as much oil as possible to generate cash — again giving Chevron a central role.
However, there are serious dangers:
Chevron’s employees and assets could be vulnerable if hostilities escalate between the U.S. and Venezuela.
The company’s delicate legal and political balance — serving U.S. sanctions requirements while operating in Venezuela — could quickly unravel if either side changes its stance.
In short, Chevron’s position is both high risk and potentially very high reward — and its future profits or losses will be shaped by how the broader U.S.–Venezuela confrontation over oil and sanctions plays out.
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