I just listened to the Chevron CEO Mike Wirth about the announcement on Venezuela and it illustrates the misinformation campaign that the Trump administration is deploying about Venezuela.
The announcement is for USD 7 billion over 5 years, not by Chevron but by the secret joint venture in which they are a partner, which includes PDVSA. Nothing will come out of the ground anytime soon, so no relief at the pump for US consumers by November 2026 or 2028. The company is not changing its guidance on free cashflow because the capital contribution was already in their investment budget. It also said that the terms of the agreement are secret, something that should delegitimize it in the eyes of any democracy. The secrecy is legal under the Venezuelan anti-sanctions exceptional law, to allow the country to circumvent US sanctions. The US is using that exception to push ahead with secret no-bid deals with US companies. Chevron’s comparative advantage? Coziness with the Venezuelan dictatorship and a track record of opposing a return to democracy.
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