The Biden government in the United States has issued a sanctions waiver for the oil major – Chevron CVX – and other energy services companies so that they have a minimal existence in the South-American country of Venezuela and keep operating in the oil-abundant nation.
By Yahoo Finance – Zacks Equity Research
Jun 1, 2022
The license issued by the U.S. Treasury Department allows Chevron and others to perform only the basic upkeep of wells Chevron operates jointly with the Venezuelan state-run oil giant PDVSA, crushing the hopes of those who wanted to see a recommencement of exports to ease pricing pressure on American gas stations.
The waiver, which will have its effects for another six months until Dec 1, 2022, retains stringent curbs intended to stop Chevron from drilling, lifting, purchasing or processing Venezuelan-origin crude or oil products.
Last week, the administration hinted at probable ease in terms of CVX’s business in the country. The company, under a distinct authorization, will be permitted to engage in talks with PDVSA on its future operations in the country.
However, the U.S. administration upheld that it would grant a complete sanctions respite to Venezuela if President Nicolás Maduro and a coalition of opposition parties led by Juan Guiado pen down an agreement to hold fresh parliamentary and presidential elections in the country.
Chevron is one of the largest publicly traded oil and gas companies in the world, with operations spanning worldwide. The only energy component of the Dow Jones Industrial Average, CVX is fully integrated as it participates in every aspect related to energy, from oil production to refining and marketing. The company generates around $95 billion in annual revenues and produces more than three million barrels per day of oil equivalent. It currently churns out oil and natural gas at a 59/41 ratio. As of the end of 2021, the company had proved reserves of approximately 12.4 billion barrels of oil equivalent.
Chevron currently has a Zacks Rank #3 (Hold). Some better-ranked stocks from the energy space that warrant a look include Earthstone Energy ESTE, PBF Energy PBF and Oasis Petroleum OAS, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Read More: Yahoo Finance – Chevron (CVX) Venezuela Curbs Prolonged by the US Government
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