Berkshire Hathaway Stands to Gain from Venezuela Oil Boom

Investors are identifying potential beneficiaries following recent geopolitical developments in Venezuela, with Berkshire Hathaway emerging as a primary contender due to its substantial investment in Chevron. As the only major US oil company still operating within Venezuela, Chevron holds a unique position should the nation's oil industry experience a revival. Berkshire Hathaway, now led by Greg Abel following Warren Buffett's retirement, is Chevron's largest corporate shareholder, owning a 6% stake valued at approximately $19 billion. This investment represents a significant portion of Berkshire's $267 billion US stock portfolio.

Venezuela possesses the world's largest proven crude oil reserves, yet production remains minimal due to decades of underinvestment. While Chevron has secured exemptions to continue limited operations, rivals like Exxon Mobil and ConocoPhillips exited the country years ago. Although analysts warn that revitalizing the sector will require years and significant capital, Chevron's existing infrastructure and partnerships position it to ramp up operations quickly if conditions change. The company currently holds stakes in five production projects in the region, maintaining a foothold that has existed for over a century.

Berkshire Hathaway holds a significant financial interest in the potential reopening of Venezuela's oil market through its ownership of Chevron. The conglomerate is Chevron's largest corporate shareholder, possessing a 6% stake worth approximately $19 billion. This valuation is based on recent portfolio updates, assuming the holding has remained unchanged. The investment constitutes a major component of Berkshire's US stock portfolio, which was valued at $267 billion at the end of September 2025. Specifically, Chevron was ranked as the conglomerate's fifth-largest stock position, representing about 7% of the total portfolio value.

Leadership of the conglomerate has recently shifted, with Greg Abel taking over as CEO following Warren Buffett's retirement. The company maintains further exposure to the energy sector via Occidental Petroleum, which serves as its next-largest stock holding after Chevron. Berkshire owns more than a quarter of Occidental, a stake currently valued at $11 billion. The combined holdings suggest a substantial bet on the oil industry's long-term prospects.

Chevron distinguishes itself as the only US oil major still operating in Venezuela, a position secured through specific exemptions to US sanctions. These exemptions allow the company to produce and export limited amounts of Venezuelan oil. This operational presence stands in contrast to competitors such as Exxon Mobil and ConocoPhillips, which withdrew from the country years ago following the nationalization of the industry and government seizures of foreign assets.

The company's deep roots in the region facilitate its potential to capitalize on any market reopening. Chevron currently holds stakes in five production projects in Venezuela, established through partnerships with affiliates of the country's state oil company. On an earnings call in August, CEO Mike Wirth emphasized this long-standing relationship, noting that Chevron has operated in Venezuela for more than a century. He stated that the company has "played an important role in regional energy security, as well as maintaining American economic interests."

Industry analysts suggest Chevron is well-positioned for a rapid expansion should conditions improve. According to Maurizio Carulli, a global energy analyst at Quilter Cheviot, the company "stands to benefit from any reopening." Similarly, Charles-Henry Monchau, CIO of Syz Group, noted that Chevron possesses the personnel, licenses, and oil fields "ready to ramp up immediately."

The potential for a Venezuelan oil boom is driven by recent political statements. The Trump administration has indicated plans to revive the nation's oil industry, with President Donald Trump envisioning large US oil companies modernizing Venezuela's pipelines and refineries. This prospect has already influenced market behavior, causing investors to purchase oil stocks. Chevron shares surged as much as 6.3% to a nine-month high of approximately $166, briefly valuing Berkshire's stake at over $20 billion. Although shares retreated the following day, they remain up nearly 3% for the year.

Despite the optimism, significant hurdles remain. Venezuela holds the world's largest proven crude oil reserves but currently produces only about 1% of global output due to decades of underinvestment. Industry analysts warn that revitalizing the sector will require years and substantial capital. Furthermore, US companies are hesitant to invest heavily without assurances that assets will not be seized or contracts altered in the future. Consequently, Venezuela is not viewed as an "overnight game changer" for Chevron or Berkshire Hathaway.

A Chevron spokesperson addressed the company's current stance, stating: "Chevron remains focused on the safety and wellbeing of our employees, as well as the integrity of our assets. We continue to operate in full compliance with all relevant laws and regulations."