Why Venezuela’s Vast Oil Reserves Could Reshape US Energy Winners And Losers — Three Stocks To Watch - ConocoPhillips (NYSE:COP), Chevron (NYSE:CVX)

Group 1: U.S.-Venezuela Energy Market Dynamics - The evolving U.S.–Venezuela standoff is attracting attention from energy markets as potential shifts in sanctions and oil policy could impact American companies [1][2] - Venezuela possesses the world's largest proven crude reserves, yet political turmoil and underinvestment have left much of this oil stranded, currently producing about 1 million barrels per day [6] Group 2: Key Companies and Potential Benefits - Chevron Corp. is the only major U.S. oil producer still operating in Venezuela under a special Treasury license, which allows limited extraction and exports, potentially gaining broader access to heavy crude if restrictions are eased [3] - Halliburton Co. could benefit from future sanction relief, unlocking demand for its services to repair Venezuela's aging oil infrastructure [4] - Valero Energy Corp. operates sophisticated heavy-crude refineries in the U.S. and could see improved margins if Venezuelan oil returns to global markets, providing cheaper feedstock [5] Group 3: Production Potential and Market Impact - Venezuela could potentially increase production to 4 million barrels per day, but achieving this would require significant investment and time [6] - Currently, about 80% of Venezuela's oil production is exported to China, with around 15% reaching the U.S. through Chevron-linked ventures [7] - Other U.S. energy companies like Exxon Mobil and ConocoPhillips may experience indirect effects as global supply dynamics shift due to changes in U.S. policy [7]