Scott Bessent lauds $7B Chevron Venezuela deal as a salve to red-hot gas prices, but will it really work?

Scott Bessent lauds $7B Chevron Venezuela deal as a salve to red-hot gas prices, but will it really work? Christy Bieber Thu, September 3, 2026 at 7:20 PM GMT+2 9 min read CVX CL=F Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. Chevron is making a multibillion dollar bet on Venezuela's troubled oil industry.

The company announced on Sept. 2 that it plans to expand operations and, together with Venezuelan joint-venture partners, invest over $7 billion to double local oil production within five years (1). Must Read Jeff Bezos backs a platform that lets anyone invest in rental homes for as little as $100 — 6 ways to build wealth like a landlord without actually being one JPMorgan sees gold hitting $5,000/oz by Q4 — and savvy investors are protecting their wealth with a tax-advantaged Gold IRA.

Get your free guide from Priority Gold The tax breaks in Trump's 'big beautiful bill' expire after 2028. Here are 4 moves to make before the window closes The announcement came after President Donald Trump unveiled a historic Aug. 31 agreement between Venezuelan interim authorities and North American Blue Energy Partners (NABEP) (2).

This agreement follows the January capture of Venezuelan President Nicolás Maduro by the U. S. military, and the installation of an interim government led by Venezuelan vice president Delcy Rodríguez.

Chevron's Venezuelan joint ventures have already increased production by 15% year-to-date, but this latest expansion further advances the Trump administration's broader effort to open Venezuela to foreign investment. Treasury Secretary Scott Bessent praised the initiative, stating on Fox & Friends : "No American firm knows how to operate in Venezuela better than Chevron. It is going to push down oil prices, push up production (3).

" However, any relief at the pump is likely to be a long time coming, as ramping up production isn't an immediate process. In fact, Chevron's expansion is far from a guaranteed gas-price fix. Despite having the largest proven oil reserve in the world, Venezuela has low output — only just over $1 million barrels per day (BPD) due to existing infrastructure limitations (4).

Questions also remain about the legality and longevity of current efforts, as the extent of interim President Rodríguez's authority is unclear (1). Although Rodríguez has signed off on the deal, Venezuela's National Assembly has yet to approve it. Ultimately, whether financial relief comes will hinge on the company's ability to secure and sustain substantially more oil flowing to the global market (5).

Chevron believes Venezuelan expansion will deliver 'low-cost oil growth' Chevron's presence in Venezuela dates back over a century. Today, it's the only major U. S.

oil company that maintains a significant ongoing operation in Venezuela. Story Continues Chevron operates through joint ventures with the state-owned oil company, Petróleos de Venezuela. The new joint venture will now have two additional areas in the Orinoco Oil Belt as part of the expansion, and the goal is to produce 600,000 BPD within five years, up from 280,000 BPD today (6).

Chevron didn't just receive acreage, though. The new agreements establish improved fiscal, commercial and legal terms for its Venezuelan joint ventures. Chevron predicted in a statement that total costs will ultimately be less than $20 per barrel (7).

"With improved terms and additional acreage, we are strengthening a portfolio that we believe can deliver attractive low-cost oil growth, support energy supply and create differentiated long-term value," Chevron Chairman and CEO Mike Wirth wrote. High oil prices have been a major driver of inflation in recent months since the start of the conflict in Iran, so the future increase in oil supply and potential downward pressure on prices may be welcome news for consumers (8). However, shifts won't happen instantly, and there's no guarantee Chevron's targeted bpd increase will ever occur, especially given a history of challenges in Venezuela, including decaying infrastructure and political instability.

There's a lesson for investors here, too. Making big bets on future promises, no matter what the headlines say, can be a risky move. Read More: Millionaires under 43 hold only 32% of their wealth in stocks.

Here's where their money is actually going Investing for uncertainty The long-term impact of President Trump's efforts to reduce oil prices and bolster energy independence could benefit the U. S. economy if successful, but current uncertainty creates challenges for investors.

That's why it's arguably more important than ever to consider your investments carefully before betting big on a new initiative with your hard-earned money. But staying up to date on these kinds of developments can be a full-time job, so it could pay to have a little bit of help to guide your investment decisions. Moby offers the critical insight you need to stay informed on market shifts and identify strong long-term investments under any market conditions.

Moby's team includes former hedge fund analysts who spend hundreds of hours receiving and analyzing data to provide stock and crypto reports delivered straight to you . The expert research and recommendations make it easy to identify solid long-term investments, especially as reports are intuitive even for beginners. In four years, and across almost 400 stock picks, Moby's recommendations have beaten the S&P 500 by almost 12% on average.

They also offer a 30-day money-back guarantee , so you can feel confident signing up to become a smarter investor in just five minutes . If you're ready to invest based on these recommendations, you'll also need a way to do it — unless you're already working with a broker. Even then, you may want to consider keeping trading costs low by using an online stock broker service.

One of the easiest ways to invest is to open a self-directed trade account with SoFi . This DIY approach allows you to invest with no commission fees. SoFi is designed to help you learn investing as you go, with real-time investing news, curated content and the data you need to make smart decisions about the stocks that matter most to you.

Plus, for a limited time, you can get up to $1,000 in stock when you fund a new account. But investing in a well-researched, methodical manner is just one part of the puzzle. You also need to maintain what you have, and there's no guarantee that this deal will drive down gas prices any time soon.

So, protecting your money from the sting of inflation will likely continue to be important. Real estate can serve as a safe haven If you'd prefer to diversify outside equities amid current economic uncertainty, investing in real estate can offer an attractive alternative. Institutional investors have long looked to private-market real estate as a way to help stabilize their portfolios.

This asset class offers a mix of potential tax benefits, regular cash flow, a hedge against inflation and returns that are less correlated with public equities. Historically, individual investors haven't had great options for accessing high-quality, private-market real estate. In recent years, crowdfunding platforms have opened access to a broader demographic, but outcomes often depend on factors like deal structure, platform incentives and the expertise of the sponsor.

Lightstone DIRECT's direct-to-investor model ensures a high degree of alignment between individual investors and a vertically-integrated, institutional owner-operator — a sophisticated and streamlined option for individual investors looking to diversify into private-market real estate. With Lightstone DIRECT, accredited individuals can access the same multifamily and industrial assets Lightstone pursues with its own capital, with minimum investments starting at $100,000. Another option is mogul , which focuses more exclusively on residential properties.

Founded by former Goldman Sachs real estate investors , the platform offers fractional ownership in blue-chip rental properties that include a handpicked selection of the top 1% of single-family rental homes nationwide . Each property is carefully vetted, and the platform features an average annual IRR of 18. 8%.

Their cash-on-cash yields, meanwhile, average between 10% and 12% annually. Offerings often sell out in under three hours , and the investment commitment is typically $15,000 to $40,000 per property. A professional can offer the support you need Choosing the right investments can be challenging in a turbulent political and economic environment.

If you're not sure where to start, it might be time to talk to an expert about what investments — whether self-directed investing or real estate — are best for you. A financial advisor can help you create a plan that makes sense for your current stage of life, risk tolerance and financial goals. But choosing an advisor can be a major commitment, since you want a professional who provides the support you need.

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Associated Press ( 1 ); The White House ( 2 ); NBC Miami ( 3 ); Reuters ( 4 ); Fox Business ( 5 ); CNBC ( 6 ); Chevron ( 7 ); NBC News ( 8 ) This article provides information only and should not be construed as advice. It is provided without warranty of any kind.