Chevron plans to double oil production in Venezuela through a $7 billion investment. Venezuela. The country that seized Chevron's assets nineteen years ago. The country where the government decided foreign oil companies were optional. That Venezuela.
This comes amid a U.S. push to increase Venezuelan oil production. We went from sanctions to please-pump-more-oil in record time. Nothing says geopolitical consistency like spending a decade choking off a country's economy and then asking them to help with your energy needs. The technical setup here is flawless.
Retail traders will see this headline and start Googling "Venezuela ETFs" like they discovered a cheat code. They will not ask why Chevron thinks the third time is the charm. They will not wonder what happens when the political winds shift again. They will simply buy CVX calls and feel like Rockefeller.
Seven billion dollars. In Venezuela. The current administration loves this deal. The next administration will also love it, right up until they nationalize it again and rename the whole operation Petróleos de la Revolución or whatever sounds good that year. This is the kind of investment that comes with a complimentary blindfold.
Chevron executives sat in a boardroom and decided Venezuela was a safe bet for seven billion dollars. These are the same people who get paid to assess risk. They looked at the charts. They ran the models. They said yes to Venezuela. And your technical analysis is what exactly? A couple of trendlines and a moving average you learned from a YouTube guy named Brandon?
The stock will do what it does. The headlines will not help you. Chevron is betting billions on a country with a perfect track record of confiscating billions, and you think reading this news gives you an edge.
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