Trump's Promises Fail to Attract Major Oil Companies to Venezuela
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
- Investment Intentions Decline: Treasury Secretary Scott Bessent noted that despite Trump's claims of nearly $100 billion in oil investments, major oil companies are showing a significant lack of interest in Venezuela, indicating a strategic shift in corporate boards that could impact future investment decisions.
- High Interest from Independents: Bessent mentioned that independent oil companies and wildcatters are eager to invest in Venezuela, although their smaller scale may not significantly influence overall oil supply, potentially leading to market imbalances.
- Upcoming Industry Meeting: Bessent's comments come ahead of a potential meeting between leaders of three major U.S. oil companies and Trump, highlighting the tension within the industry that could affect policy direction and investment confidence.
- Positive Market Reaction: Despite the decline in interest from major oil companies, stocks of related firms like Valero Energy and PBF Energy surged 17.20% and 17.64% respectively over the past week due to market sentiment shifts following U.S. military actions, indicating a pursuit of short-term opportunities.
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Analyst Views on CVX
Wall Street analysts forecast CVX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CVX is 176.95 USD with a low forecast of 158.00 USD and a high forecast of 206.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 171.190
Low
158.00
Averages
176.95
High
206.00
Current: 171.190
Low
158.00
Averages
176.95
High
206.00
About CVX
Chevron Corporation is an integrated energy company. The Company produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance its business and industry. The Company’s segments include Upstream and Downstream. Upstream operations consist primarily of exploring for, developing, producing and transporting crude oil and natural gas; liquefaction, transportation and regasification associated with LNG; transporting crude oil by major international oil export pipelines; processing, transporting, storage and marketing of natural gas; carbon capture and storage; and a gas-to-liquids plant. Downstream operations consist primarily of the refining of crude oil into petroleum products; marketing crude oil, refined products, and lubricants; manufacturing and marketing of renewable fuels, and transporting of crude oil and refined products by pipeline, marine vessel, motor equipment and rail car.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Chevron's Q4 Earnings Preview Highlights Venezuela Opportunity
- Revenue Expectations Decline: Analysts forecast Chevron's Q4 revenue at $48.57 billion, down from $52.23 billion last year, indicating challenges amid market volatility that could affect investor confidence.
- Earnings Per Share Forecast: Expected EPS is $1.45, lower than last year's $2.06, and while the company has beaten estimates in five of the last ten quarters, this decline may raise market concerns.
- Divergent Analyst Ratings: Morgan Stanley maintains an Overweight rating but lowers the price target to $174, while Jefferies keeps a Buy rating and raises the target to $189, reflecting mixed market sentiment on Chevron's future performance.
- Venezuela Opportunity: Chevron could be one of the biggest beneficiaries of U.S. military actions in Venezuela, with investors keenly watching how the company assesses this market opportunity and its implications for short- and long-term financials.
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Chevron CEO Highlights Improved Investment Climate in Venezuela
- Improved Investment Climate: Chevron CEO Mike Wirth noted that Venezuela has eased state control over the oil industry through reforms to its hydrocarbon law, granting private producers more autonomy, which is expected to attract more investment.
- Production Potential: Chevron could increase its production in Venezuela by up to 50% over the next 18 to 24 months if authorized by the U.S. government, with current production at approximately 250,000 barrels per day through joint ventures with PDVSA.
- Safety Stability: Wirth emphasized that the security situation where Chevron operates is mostly stable, although some areas are less safe; the company has implemented strong safety protocols to ensure uninterrupted operations.
- Strong Market Performance: Chevron's fourth-quarter earnings exceeded expectations, with a projected 12% increase in global production and a 16% increase in the U.S. by 2025, while its stock has risen nearly 14% since the beginning of the year, indicating robust market performance.
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