Chevron, Oil Stocks Soar as Trump Promises Revival of Venezuelan Oil Industry

Investors are digesting the news from over the weekend that Venezuelan President Nicolás Maduro no longer is in charge of the South American nation. Early returns are promising for energy firms.

Shares of oil producers, refiners, and oilfield-services firms rose sharply in early trading Monday, two days after the U.S. military launched a strike on Venezuela and captured Maduro to face drug-trafficking charges here. Maduro, who had been indicted during the first Trump administration, was set to appear in Manhattan federal court this morning.

After Maduro’s capture, President Donald Trump said the U.S. would “run” Venezuela until an orderly transition is possible, and that U.S. oil companies would rebuild the oil infrastructure of the South American country.

Venezuela has the world’s largest known oil reserves, estimated at about 300 billion barrels, or nearly 20% of global supply. But after years of U.S. sanctions and economic turmoil, the country currently accounts for about 1% of global production.

Energy stocks rose in response after the bell Monday, with those of Chevron (CVX)—the only U.S.-based oil company currently active in Venezuela—rose 5%. Shares of rival oil producers ConocoPhillips (COP) and Exxon Mobil (XOM) were up 5% and 2%, respectively.

Shares of oilfield-services firms Halliburton (HAL), SLB (SLB), and Baker Hughes (BKR) jumped a respective 8%, 8%, and 5%.

Also surging were oil refiners Valero Energy (VLO), Marathon Petroleum (MPC), and Phillips 66 (PSX), whose shares were up 10%, 6%, and 6%, respectively.

West Texas Intermediate futures, the U.S. crude oil benchmark, were 1.2% higher at $58 per barrel.