Chevron Highlights Stocks to Consider if Venezuela's Oil Industry is Revived

Core Viewpoint - The energy sector is gaining investor interest due to rising crude oil prices following the extradition of Venezuelan President Nicolas Maduro to the U.S., with Venezuela holding the largest oil reserves globally, estimated at 300 billion barrels, representing nearly 20% of the global oil supply [1] Group 1: Chevron's Position - Chevron is the only major U.S. oil company with authorized operations in Venezuela, maintaining its presence for nearly 100 years despite nationalization and geopolitical tensions [3] - The company has obtained special U.S. government licenses for limited operations and exports of Venezuelan oil, positioning it to potentially lead the rebuilding of Venezuela's oil industry [4] - Increased production and exports could aid in recovering billions owed to Chevron by PDVSA, enhancing supply to U.S. refineries optimized for heavy crude oil [5] Group 2: Financial Outlook - Chevron's annual earnings are projected to contract to $7.34 per share from $10.05 in fiscal 2024, with stock experiencing a 5% increase in trading [6] - The heavy crude from Venezuela could fill a critical supply gap, potentially leading to higher margins for Chevron [6] Group 3: Other Companies of Interest - Halliburton is expected to benefit from increased demand for oil-field services if the U.S. gains control of Venezuela's oil industry, particularly through its partnership with Chevron [7] - Valero Energy is reportedly in discussions with Chevron to resume shipments of Venezuelan crude, leveraging its complex refinery systems to convert heavy crude into high-value products [8] - Both Halliburton and Valero stock have a Zacks Rank 3 (Hold) and saw over 7% increases in stock price [9] Group 4: Additional Players - SLB Limited, formerly Schlumberger, is preparing to return to Venezuela's oilfields but currently holds a Zacks Rank 4 (Sell) due to stagnant EPS revisions [10] - ConocoPhillips, which previously operated in Venezuela, could see long-term prospects improve if it re-enters the market, currently holding a Zacks Rank 3 (Hold) [11]