Venezuelan crude production is helping offset some of the impact of global supply disruptions on the United States, according to Chevron.
In a May 6 CNBC interview, Chevron Chief Executive Officer Mike Wirth said the company has been working with its partners in Venezuela to grow production amid heightened market volatility.
“Our company is well-positioned to run a lot of that oil in our refining system that is designed for that specific type of oil, and that’s been part of what we’ve been able to do to help reduce the impact of some of these global events on the U.S., and so, it’s a work in progress,” Wirth said.
Chevron, which has maintained a presence in Venezuela through periods of political and economic uncertainty, said it remains committed to working within existing frameworks while monitoring progress.
“We’ve been in Venezuela through periods of ups and downs, and as we’ve now seen a change in the leadership in the country, some changes in the policy in the country, we’re encouraged by the direction that things are moving in… It looks as if things could become better. There are signs that it’s moving in a good direction,” he said.
In March, Wirth disclosed that Chevron is producing about 250,000 barrels per day (b/d) in Venezuela through joint ventures with PDVSA, accounting for roughly a quarter of the country’s output.
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This came two months after the energy company said it sees potential to increase its Venezuelan oil production by up to 50% over the next 18–24 months.
Chevron remains the only U.S. supermajor currently operating in Venezuela, where investors see large untapped reserves. Expansion in output could bolster Chevron’s supply to its refineries and contribute to U.S. energy security objectives.
Chevron entered Guyana last year, through its acquisition of Hess Corporation, and is now co-venturing with ExxonMobil and CNOOC in the prolific Stabroek Block, which currently produces over 900,000 b/d of oil.
