Chevron warns of energy security risks if operations cease in Venezuela

In early May 2025, Chevron CEO Mike Wirth raised alarms regarding the potential withdrawal of the company's operations from Venezuela due to the expiry of a Biden-era license. The company, which is currently allowed to export Venezuelan oil to the United States, is under pressure from the Trump administration to stop drilling in Venezuela amid ongoing political turmoil there. Wirth emphasized that halting drilling could jeopardize U.S. energy security, as U.S. refineries are specifically designed to process the type of oil produced in Venezuela. Wirth expressed concerns about energy security, noting that if Chevron withdraws, it would create opportunities for Chinese and Russian companies to fill the void. He highlighted China's increasingly dominant position as the largest buyer of Venezuelan oil, stressing that Venezuelan government officials have been encouraging more purchases by China. This shift would likely result in a stronger Chinese influence in the region, which Wirth believes is detrimental to American interests. Furthermore, the CEO explained that the situation in Venezuela isn't unique, citing similar narratives in Africa and Central Asia where Chinese investment has fostered significant economic control over local governments. As the only American company remaining in Venezuela, Chevron faces a precarious situation where its departure could result in a significant loss of control over local resources. Additionally, he warned that if American companies vacate the region entirely, it would provide foreign powers an unchecked opportunity to assert their influence in the Americas. The complexities surrounding Venezuela's oil reserves, which are among the largest globally, present both opportunities and obstacles. Venezuelan opposition leader María Corina Machado supported Trump's strategy against the Maduro regime, arguing for a transition to a democratic government to restore Venezuela's potential as a leading energy hub in the Americas. Chevron, currently exporting about 240,000 barrels of oil per day, represents a significant fraction of Venezuela's overall oil output, and its future actions could have wide-reaching implications for both the U.S. and Venezuela.