Could Chevron See Big Gains from a Venezuelan Oil Resurgence?

The recent political developments in Venezuela have caught the attention of investors eager to identify potential beneficiaries of the US's intentions to deliver an oil boom in the region. Central to this narrative is Chevron, the only American oil major still active in Venezuela, a position supported by substantial backing from Berkshire Hathaway.

Berkshire Hathaway's Strategic Position

Now under the leadership of Greg Abel following Warren Buffett's retirement, Berkshire Hathaway holds a significant 6% ownership in Chevron. Assuming their position remains unchanged since the latest portfolio update, this stake is valued at roughly $19 billion. By the end of September 2025, Chevron was Berkshire's fifth-largest equity holding, contributing to about 7% of its vast $267 billion US stock portfolio.

Untapped Potential in Venezuela's Oil Reserves

Venezuela, home to the planet's most extensive proven crude oil deposits, has suffered from prolonged neglect of its oil infrastructure. Consequently, its contribution to global oil production stands at a meager 1%. With geopolitical shifts, Chevron has been able to negotiate temporary relief from US sanctions, facilitating limited oil production and exports from the region.

Historically, other big US oil players like Exxon Mobil and ConocoPhillips exited Venezuela due to the nationalization of its oil resources and the subsequent appropriation of foreign assets.

Optimism Around US Involvement

The rhetoric from former President Donald Trump has been encouraging for US involvement in boosting Venezuela's oil industry. He imagines a scenario where prominent US oil companies rejuvenate the country's outdated pipelines and refineries, thus enhancing its oil production capabilities.

This wave of optimism has stirred investor interest, as seen with Chevron's shares soaring by 6.3% in just one day, reaching a peak not seen in nine months. Although there was a slight retreat the following day, Chevron's shares have maintained an almost 3% increase during 2026.

Chevron's Established Presence

Chevron's long-standing involvement in Venezuela, spanning over 100 years, positions it uniquely as the country possibly reopens to foreign investment. On multiple projects, it collaborates directly or through partnerships with local state-controlled enterprises. CEO Mike Wirth underscored the importance of Chevron's role in both regional energy stability and safeguarding US economic interests during a recent earnings call.

Experts like Maurizio Carulli, a global energy analyst at Quilter Cheviot, and Charles-Henry Monchau from Syz Group, recognize Chevron's potential for quick action due to its comprehensive resources and prepared sites within Venezuela.

Challenges on the Horizon

Despite the optimism, industry analysts warn of the significant time and financial investment required to truly reboot Venezuela's oil industry. For major US companies, a major concern remains the protection of their assets against possible seizures and contract violations, which tempers some of the bullish sentiment.

Given the complexities, Venezuela's oil sector is more of a long-term opportunity rather than an immediate windfall for Chevron and Berkshire Hathaway. Furthermore, Berkshire's investments in the oil industry extend beyond Chevron, with significant stakes in other entities like Occidental Petroleum as part of its diverse energy portfolio.

According to a statement from Chevron to Business Insider, the company commits to employee safety and asset integrity while ensuring adherence to all relevant legal frameworks and regulations.