Chevron’s license to pump oil in Venezuela gives it access to one of the world’s last places to invest in fossil-fuel development—but there are risks
The logic of Chevron’s bet on staying put in Venezuela is that it will have earlier access to the country’s vast resources if the political clouds clear, said Edward Chow, a former Chevron executive and a senior associate at the Center for Strategic and International Studies.
Former and current U.S. officials said Chevron orchestrated a persistent campaign to reopen Venezuela, involving efforts by Chief Executive Mike Wirth and other top executives. Earlier this year, Mr. Wirth told U.S. Energy Secretary Jennifer Granholm that Chevron could quickly increase production in Venezuela, shoring up global oil supplies following Russia’s invasion of Ukraine, people familiar with the meeting said.
Mr. Maduro’s government has already reaped huge political benefits from the deal and could receive desperately needed oil revenue, analysts say. Though Chevron is banned from paying taxes or royalties to the Venezuelan treasury under the new license, the PdVSA-controlled joint ventures it participates in will make such payments, replenishing the government’s coffers as production rises, according to University of Denver international affairs professor Francisco Rodríguez.
“Given the Chinese presence, the Russian presence and the Iranian presence, it was really important to have a U.S. company in Venezuela,” he said.
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