Trump’s push to revive Venezuela oil could help some firms but will take years

President Trump’s plans to revive Venezuela’s oil industry are likely to take years to produce large output gains, but analysts and industry officials say clear winners and losers are already emerging. Likely beneficiaries include companies already operating in Venezuela, such as Chevron, and U.S.

Gulf Coast refiners built to process heavy Venezuelan crude. Mark A. Nelson of Chevron told Mr. Trump the company, which produces about 240,000 barrels a day in Venezuela, could increase output by about 50 percent in 18 to 24 months. Repsol said it could triple its current production of 45,000 barrels a day, Eni said it was ready to bring in U.S.

partners, and Shell holds a U.S. license to pursue an offshore gas project called Dragon. Analysts say U.S. access to Venezuelan oil could shift global energy dynamics. J.P. Morgan wrote that Washington’s control of Venezuela’s resources could “mark a notable shift in global energy dynamics” and help keep prices in historically lower ranges.

Jim Burkhard of S&P Global Energy said Venezuela’s output could rise about 50 percent to roughly 1.5 million barrels a day in a year or two, but added that the roughly half‑million barrel increase would be “not inconsequential, but it’s not something that on its own is going to move the oil price,” and that it would be less than half of 1 percent of global supplies.

Key Topics

Business, Venezuelan Oil, Chevron, Gulf Coast Refineries, Repsol, Eni