Scott Bessent lauds $7B Chevron Venezuela deal as a salve to red-hot gas prices, but will it really work?

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Chevron is making a multibillion dollar bet on Venezuela's troubled oil industry.

The company announced on Sept. 2 that it plans to expand operations and, together with Venezuelan joint-venture partners, invest over $7 billion to double local oil production within five years (1).

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The announcement came after President Donald Trump unveiled a historic Aug. 31 agreement between Venezuelan interim authorities and North American Blue Energy Partners (NABEP) (2). This agreement follows the January capture of Venezuelan President Nicolás Maduro by the U.S. military, and the installation of an interim government led by Venezuelan vice president Delcy Rodríguez.

Chevron's Venezuelan joint ventures have already increased production by 15% year-to-date, but this latest expansion further advances the Trump administration's broader effort to open Venezuela to foreign investment.

Treasury Secretary Scott Bessent praised the initiative, stating on Fox & Friends : "No American firm knows how to operate in Venezuela better than Chevron. It is going to push down oil prices, push up production (3)."

However, any relief at the pump is likely to be a long time coming, as ramping up production isn't an immediate process. In fact, Chevron's expansion is far from a guaranteed gas-price fix. Despite having the largest proven oil reserve in the world, Venezuela has low output — only just over $1 million barrels per day (BPD) due to existing infrastructure limitations (4).

Questions also remain about the legality and longevity of current efforts, as the extent of interim President Rodríguez's authority is unclear (1). Although Rodríguez has signed off on the deal, Venezuela's National Assembly has yet to approve it.

Ultimately, whether financial relief comes will hinge on the company's ability to secure and sustain substantially more oil flowing to the global market (5).

Chevron believes Venezuelan expansion will deliver 'low-cost oil growth'

Chevron's presence in Venezuela dates back over a century. Today, it's the only major U.S. oil company that maintains a significant ongoing operation in Venezuela.