Chevron Corporation (NYSE:CVX) is targeting a sharp increase in Venezuela production while squeezing more cash from its U.S. shale operations and pursuing new growth opportunities in the Middle East and power generation.
Speaking Tuesday at the Barclays 40th Annual Energy-Power Conference, Chief Financial Officer Eimear Bonner said Chevron’s portfolio is “bigger, better and stronger than we’ve ever been.”
Venezuela Production Could More Than Double
Chevron currently produces about 280,000 barrels of oil per day in Venezuela and expects output to reach 600,000 barrels per day around 2031.
The expansion comes as the Trump administration opens the door to greater U.S. participation in developing Venezuela’s vast oil resources.
Against that backdrop, Chevron plans about $7 billion in gross investment over five years and expects to more than double its rig count. Bonner said plateau production could reach 600,000 to 700,000 barrels per day and potentially remain there for five to 10 years.
The assets carry total costs of less than $20 per barrel, she said.
Chevron also secured additional acreage, including the Carabobo 1 and 2 blocks, alongside improved fiscal terms and stronger legal protections.
Bonner said the company does not expect major infrastructure projects to support the planned production increase.
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Permian Shifts From Growth To Cash
Chevron is also focusing on free cash flow in the Permian Basin after reaching production of about 1 million barrels per day.
Bonner said Chevron is drilling twice as fast as it did two years ago. The company has guided to a 25% reduction in capital expenditure intensity in 2026 compared with 2025.
She said further capital efficiencies are possible as Chevron applies technology, reliability improvements and operating practices across its shale portfolio.
Cost Savings Arrive Early
Chevron delivered its $3 billion structural cost-reduction target six months ahead of schedule, with about 70% coming from efficiency gains.
Bonner said the company sees additional savings opportunities following its Hess acquisition, particularly through overlapping operations, contract optimization and lower operating costs.
Chevron is also pursuing growth in Iraq, where it is in exclusive talks involving West Qurna 2, the Nassiriya field and a potential pipeline investment.
Meanwhile, Chevron continues to target shareholder returns. Bonner reiterated its $10 billion to $20 billion share-buyback range but said the company prefers not to adjust repurchases during periods of sharp oil-price volatility.
CVX Price Action: Chevron shares were up 1.76% at $212.99 at the time of publication on Wednesday. The stock is trading near its 52-week high of $214.71, according to Benzinga Pro data.
Photo via Shutterstock
