Recent reports indicate that the Trump administration is contemplating an extension of Chevron Corporation’s (NYSE: CVX) operational license in Venezuela, an unexpected development in U.S.-Venezuela relations.
According to Bloomberg, the White House plans to extend Chevron’s deadline to cease operations for another 60 days while negotiations with the Maduro regime progress. This marks a notable shift from the Trump administration’s previous ultimatum, which required Chevron to exit by May 27, 2025.
This extension not only impacts Chevron but also raises concerns about the United States’ energy security. Venezuela supplies around 240,000 barrels of crude daily to Gulf Coast refineries, making it a critical player in the energy landscape.
Since 2022, Chevron has navigated U.S. sanctions, operating under a Treasury-issued license that renews monthly. The oil giant has ramped up its output to account for roughly 20% of Venezuela’s total production, becoming vital for the nation’s economic recovery.
Chevron has ambitious plans for its Venezuelan ventures, aiming to increase exports from the Petropiar joint venture by up to 50% this year, targeting a production rate of 143,000 barrels per day. Recent data shows that overall production across Chevron’s four joint ventures in Venezuela has surged past 250,000 b/d, a considerable rise from just 40,000 b/d in 2022 before sanctions were eased. This boost represents a significant portion of Chevron’s global production, which stands at 3.35 million barrels of oil equivalent per day as of Q1 2025.
While these developments present opportunities for CVX, our focus at Extreme Investor Network is on emerging AI stocks that exhibit even greater potential for returns and lower downside risk. For investors seeking standout opportunities, we recommend exploring our recent analysis of a cheapest AI stock with 100x upside potential that you won’t want to miss.
READ NEXT: 10 Cheap Energy Stocks to Buy Now and 10 Most Undervalued Energy Stocks According to Hedge Funds
Disclosure: None.