The Chevron logo is seen at a gas station on July 18, 2025 in Austin, Texas.
Brandon Bell | Getty Images
Shares of U.S. oil companies soared in premarket trade on Monday, as investors scrutinize the fallout from the Trump administration’s surprise military operation in Venezuela.
Chevron shares rose 7.6% at 10:25 a.m. London time (5:25 a.m. ET), with Exxon Mobil up 3.9%, exploration and production company ConocoPhillips advancing 7% and oilfield services giant SLB climbing 9.3%.
The moves come after the U.S. conducted a major military operation in Venezuela over the weekend, capturing Venezuelan President Nicolas Maduro and his wife, Cilia Flores, in an audacious intervention that has sent shockwaves across the globe.
U.S. President Donald Trump has since said the White House will “run” the South American country until such a time that “a safe, proper and judicious transition” can take place.
Venezuela is a founding member of OPEC, an influential energy alliance, and sits on the largest proven crude oil reserves in the world at 303 billion barrels, according to the U.S. Energy Information Administration. That represents roughly 17% of global oil reserves.
Trump has said U.S. investment in Venezuela’s energy sector is now a core objective for his administration.
“We’re going to have our very large United States oil companies — the biggest anywhere in the world — go in, spend billions of dollars, fix the badly broken infrastructure, the oil infrastructure,” Trump said in a press conference from his Mar-a-Lago residence in Palm Beach, Florida.
“Let’s start making money for the country,” Trump said on Saturday.
Oil prices were last seen slightly lower on Monday morning.
International benchmark Brent crude oil futures with March delivery traded down 0.6% at $60.40 per barrel, while U.S. West Texas Intermediate futures with February delivery stood 0.4% lower at $57.11.
‘A long-term play’
Neil Atkinson, an independent energy analyst and former London-based employee of Venezuela’s state-owned oil company PDVSA, said there are several challenges to address when it comes to fixing Venezuela’s oil industry.
“Look at it cynically, you want to get Venezuela’s oil industry back up and running. If you want to do that, you can only do it if you have stability, and that means you have to ensure that there is law and order, which there isn’t now,” Atkinson told CNBC’s “Squawk Box Europe” on Monday.
“You have to ensure that there is stable electricity supplies, which there isn’t now. You have to ensure that food and fuel supplies are reliable, where they are not now. So, a lot has to happen and it cannot happen without the consent of the Venezuelan people,” he added.
Asked whether American oil companies would want to go into Venezuela given relatively low oil prices, Atkinson said, “Well, I would think for long-term strategic reasons, yes. But, as you say, the price is low currently.”
He added: “There are special issues in terms of increasing oil production in Venezuela, the type of oil that it is, the cost and complexity of processing it. But for them, it would be a long-term play. That, to me, is the main reason why investors might feel more positive toward those companies.”
— CNBC’s Spencer Kimball contributed to this report.