Venezuela Oil Market Opening Attracts Investors with 303 Billion Barrels of Reserves
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
- Market Potential: Venezuela's 303 billion barrels of proven oil reserves position it as one of the world's most coveted oil producers, attracting investor interest, though caution is advised before capital allocation.
- Investor Caution: Despite the U.S. capturing former President Maduro, leading investors to reassess the energy sector, the Energy Select Sector SPDR Fund (XLE) has only risen 1.54% since the event, indicating market uncertainty.
- Chevron's Market Advantage: Chevron (CVX) has maintained a footprint in Venezuela, with its stock rising 2% since the U.S. incursion, and its existing infrastructure may provide a head start for future production increases, potentially yielding long-term rewards.
- Oil Services Opportunities: Companies like SLB and Halliburton, which have maintained a presence in Venezuela, are likely to be among the first to secure service contracts, with their technological expertise crucial for helping Venezuela regain its former production glory.
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: 169.050
Low
158.00
Averages
176.95
High
206.00
Current: 169.050
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.
