Chevron(US:CVX) Hua Er Jie Jian Wen·2026-01-20 06:23Core Viewpoint - President Trump is pressuring the U.S. oil industry to invest $100 billion into Venezuela's outdated oil infrastructure, creating a dilemma for Chevron, the only U.S. oil giant operating in the country, as it must balance political demands with shareholder interests [1][2]. Group 1: Investment Pressure and Industry Response - Trump met with executives from about 20 oil companies, urging them to invest significantly in Venezuela to boost oil production, but received little commitment from most companies [1]. - Chevron's Vice Chairman Mark Nelson received a clear ultimatum from Trump regarding the company's future in Venezuela, emphasizing the need for a swift agreement [1][2]. - The oil industry is wary of Trump's aggressive vision, as a drop in oil prices to $50 per barrel could lead to significant losses for companies like Chevron, which would see Venezuelan heavy crude prices fall to the $30 range [1][2]. Group 2: Chevron's Operational Status and Strategic Approach - Chevron is currently the only U.S. company with active operations in Venezuela, employing around 3,000 workers and producing approximately 240,000 barrels per day, which accounts for one-third of the country's total output [4]. - While Chevron can potentially double its production using existing resources, this does not equate to the substantial infrastructure investment Trump desires [4]. - Chevron prefers to enhance production through repairs and upgrades rather than committing to new, multi-billion dollar projects, which could take 5 to 7 years to yield results [4][5]. Group 3: Legal and Regulatory Concerns - Industry executives believe that significant investments require assurances from the U.S. government regarding financial and security guarantees [6]. - There are concerns about the legality of contracts signed under pressure from the Trump administration, which could be deemed coercive, leading to potential legal challenges [6]. - The consensus among companies is to remain cautious until a legal framework is established between the U.S. and Venezuela regarding oil contracts and sanctions [6].