In addition, U.S. Energy Department chief Chris Wright said America will control Venezuela’s oil sales “indefinitely” by funneling revenues to U.S. banks and lifting sanctions that have suppressed the country’s crude exports for years.
Against that backdrop, shares of oil company Chevron rose nearly 9% in a matter of days, but then squandered nearly all of the gains. Other U.S. oil companies – Exxon Mobil, ConocoPhillips and Halliburton – followed the same trajectory.
The immediate beneficiaries of the situation in Venezuela will be U.S. oil companies. Investopedia identifies the following beneficiaries among oil companies in the US market:
Chevron. It is the only major U.S. company still operating in Venezuela. It operates joint ventures with PDVSA, which account for about a quarter of the country’s oil production, and exports about 140,000 barrels per day. Morningstar analyst Allen Goode said the company is best positioned among major oil companies to capitalize;
ConocoPhillipsand Exxon Mobil. They left Venezuela after nationalization in 2007, but have $12 billion and $1.4 billion respectively in outstanding claims on assets expropriated by the government. JPMorgan analysts say the companies may return to recover assets previously seized from them. A ConocoPhillips spokesman said the company is monitoring developments in Venezuela and their potential implications for global energy supply and stability. However, it is premature to speculate on any future business activity or investment, he added;
Halliburton and Schlumberger (SLB). The companies may look into building oil infrastructure, as many of Venezuela’s pipelines are more than 50 years old and its refineries are operating at 20% capacity or less;
Valero, Phillips 66, Marathon Petroleum. Refineries that will be able to handle Venezuela’s heavy crude oil.
