Chevron Steps In as Venezuela's Feedstock Supplies Tighten

Per Bloomberg,Chevron Corporation CVX has reportedly stepped in to provide critical feedstock supplies in Venezuela amid a recent disruption involving a Russian vessel and increased U.S. military presence, which has created new complications for Venezuela’s crude-loading activities. Chevron’s operations in Venezuela once again highlight the company’s ability to adapt to fast-shifting geopolitical dynamics and protect operational continuity. As always, CVX continues to navigate these challenges while ensuring its activities remain fully compliant with U.S. laws and regulations.

Supporting Stability Through Essential Feedstock Deliveries

Venezuela requires diluent naphtha to move its heavy crude through pipelines, and supply has tightened following an explosion at a local facility that typically helps separate the material. In this environment, Chevron’s ability to procure and deliver naphtha has become increasingly important.

When the CVX-booked vessel Nave Neutrino was unable to load crude as scheduled, it was rerouted to secure naphtha in the U.S. Virgin Islands, ensuring it could later return to Venezuela, discharge the feedstock, and resume crude-loading operations. This flexibility underpins Chevron’s role in helping sustain energy flows despite external disruptions.

Navigating Geopolitics While Maintaining Operational Integrity

The vessel diversion followed an incident where a U.S. destroyer crossed the path of a Russian ship, slowing its return to Venezuela and reinforcing the tensions shaping regional maritime logistics. As dark-fleet operators reassess their willingness to approach Venezuelan ports, Chevron remains focused on operational safety, legal compliance and stable project execution. Even as pressures mount, the company continues to operate responsibly, responding to Venezuela’s needs without compromising its regulatory obligations or long-term commitments.

Chevron’s Presence in Venezuela

Chevron has maintained a long-standing presence in Venezuela through multiple joint projects with the state-owned oil company PDVSA, including major heavy-crude ventures. Its operations expanded after receiving a limited U.S. license in 2022, which allowed restricted activity but barred revenue transfers to the Venezuelan government. This enabled higher output and better refining economics, with Chevron exporting about 240,000 barrels per day — over a quarter of Venezuela’s total production. That progress stalled when President Donald Trump revoked the license in February, citing a lack of reforms from president Nicolás Maduro.

The recent attempt to intercept a Russian tanker signals a return to a pressurizing strategy as Washington intensifies covert operations against Maduro. With intelligence activities now intensifying, Venezuela’s political tensions and already-fragile oil sector face even greater strain.

CVX’s Zacks Rank & Key Picks

Houston, TX–based Chevron is one of the largest publicly traded oil and gas companies, participating in every aspect of the energy sector, from oil production to refining and marketing. Currently, CVX holds a Zacks Rank #5 (Strong Sell).

Investors interested in the energy sector may consider some top-ranked stocks like Drilling Tools International Corporation DTI, Par Pacific Holdings, Inc. PARR and USA Compression Partners, LP USAC, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Houston-based Drilling Tools International is an oilfield services company that manufactures and rents downhole drilling tools used in horizontal and directional drilling of oil and natural gas wells. The Zacks Consensus Estimate for DTI’s 2025 revenues indicates 1.8% year-over-year growth.

Houston-based Par Pacific Holdings manages and maintains interests in energy and infrastructure businesses. The Zacks Consensus Estimate for PARR’s 2025 earnings indicates 2170% year-over-year growth.

USA Compression is one of the largest independent natural gas compression service providers across the United States in terms of fleet horsepower. The Zacks Consensus Estimate for USAC’s 2025 earnings indicates 29.8% year-over-year growth.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research