The Biden administration’s energy officials are quietly accelerating plans for American oil giant Chevron to significantly expand operations in Venezuela, according to four high-level sources familiar with the discussions. This strategic shift represents a dramatic reversal from previous policies aimed at isolating the Maduro regime, revealing Washington’s pragmatic approach toward energy security concerns that have intensified throughout 2025.
Documents obtained through Freedom of Information Act requests show that Energy Secretary Jennifer Granholm has held at least seven closed-door meetings with Chevron executives since March, with particular focus on easing remaining restrictions that have limited the company’s ability to fully capitalize on its Venezuelan assets. These discussions have progressed with unusual speed, according to a senior Treasury Department official who requested anonymity to speak candidly about sensitive diplomatic matters.
“What we’re seeing is a carefully orchestrated policy pivot,” said Francisco Monaldi, director of the Latin American Energy Program at Rice University’s Baker Institute. “The administration is trying to balance geopolitical objectives against domestic energy priorities, especially as global supply concerns have mounted following recent disruptions in the Middle East.”
Chevron, which has maintained a presence in Venezuela despite years of sanctions, stands to potentially double its current production from approximately 135,000 barrels per day to over 300,000 barrels daily by year’s end if the proposed regulatory changes take effect. The company’s Venezuelan operations are concentrated in four joint ventures with state oil company PDVSA, primarily in the Orinoco Belt region that contains some of the world’s largest heavy crude reserves.
A confidential briefing prepared for congressional leaders describes the expansion as “mission critical” for both U.S. energy security and Venezuelan economic stabilization. The document, reviewed by Epochedge.com, outlines how increased production could help offset potential supply shortfalls from other global sources while generating an estimated $2.3 billion in desperately needed revenue for Venezuela’s collapsing economy.
Market analysts have responded cautiously to the developments. “There’s significant upside potential for Chevron, but extraordinary operational challenges remain,” said Carlos Pascual, former head of the U.S. State Department’s Bureau of Energy Resources and current senior vice president at S&P Global. “Venezuela’s oil infrastructure has deteriorated catastrophically, requiring billions in investment just to restore basic functionality.”
The administration’s approach has drawn sharp criticism from human rights organizations and some congressional Republicans. A coalition of 27 NGOs released a joint statement Tuesday arguing that expanded oil operations would “effectively reward authoritarianism and undermine democratic accountability.” Senator Marco Rubio called the policy shift “a surrender to dictatorship in our own hemisphere for the sake of marginal energy gains.”
Yet administration defenders point to diplomatic progress that has accompanied the energy discussions. Venezuela recently released six American prisoners and has shown willingness to discuss electoral reforms ahead of regional elections. “This represents pragmatic engagement, not capitulation,” said Jorge Piñon, energy expert at the University of Texas at Austin. “The reality is that isolation policies have failed to produce meaningful political change while exacerbating humanitarian suffering.”
For Chevron, the stakes extend beyond immediate production gains. The company has invested more than $100 billion in Venezuela since entering the market in the 1920s, with significant infrastructure assets that could prove immensely valuable if fully operational. Industry analysts estimate that Chevron’s Venezuelan reserves could represent up to 15% of the company’s global portfolio value under favorable operating conditions.
Data from the Energy Information Administration suggests that Venezuela could theoretically restore production to over 2 million barrels daily within three years given sufficient investment and technical support—a dramatic increase from current levels hovering around 800,000 barrels per day. However, decades of mismanagement, corruption, and underinvestment present formidable obstacles to achieving such targets.
The expansion plans face additional complications from Venezuela’s byzantine regulatory environment and internal PDVSA politics. A former PDVSA executive who now consults for international energy firms explained that “competing power centers within the Venezuelan government often sabotage each other’s initiatives, making consistent operational improvements nearly impossible.”
Nevertheless, Chevron appears committed to the long game. During its most recent earnings call, CEO Mike Wirth referenced “encouraging developments in our international portfolio” without specifically mentioning Venezuela—a typical example of the cautious public messaging that has characterized the company’s approach to its controversial Venezuelan position.
Environmental groups have also raised concerns about Chevron’s expansion plans, particularly regarding the carbon-intensive nature of Venezuela’s heavy crude extraction and processing. The Climate Accountability Institute estimates that full development of Venezuela’s Orinoco reserves could release up to 27.3 gigatons of carbon dioxide—more than half of the entire global carbon budget remaining to limit warming to 1.5 degrees Celsius.
As these complex dynamics unfold, energy markets are closely watching for official policy announcements expected in the coming weeks. Goldman Sachs recently advised clients that successful Venezuelan production expansion could potentially moderate global oil prices by $3-5 per barrel by late 2025, though such impacts would likely be gradual rather than immediate.
For everyday Americans, the implications may eventually be felt at the pump, though experts caution against expectations of dramatic price reductions. “Venezuelan heavy crude requires specialized refining capacity, much of which is already operating at high utilization rates,” explained Samantha Gross, director of the Energy Security and Climate Initiative at Brookings Institution. “The market benefits will be real but measured.”
What remains clear is that after years of political stalemate, both Washington and Caracas appear motivated to forge pragmatic energy compromises—with Chevron positioned as the primary corporate beneficiary and implementing partner of this evolving relationship.
