Best Energy & Mining Stocks to Buy Amid Venezuela Market Upheaval

The United States is preparing sweeping changes for Venezuela’s oil industry following the removal of its president, creating potential upside for select U.S. companies.

Energy Secretary Chris Wright announced that Washington will oversee Venezuelan oil sales “indefinitely,” directing revenues through American banks while easing sanctions that have long restricted crude exports. Shares of Valero Energy Corp. (VLO) and Phillips 66 (PSX) climbed on the news, signaling investor optimism.

Chevron (CVX) remains the only U.S. oil major with active operations in Venezuela. Its established presence could translate into billions in gains if the administration delivers on promises to rebuild the nation’s energy infrastructure.

Despite Venezuela holding the world’s largest proven reserves, years of economic instability, corruption, and sanctions have severely limited production and exports. A revitalization of the sector could unlock significant opportunities for U.S. refiners and oil majors positioned to benefit.

Normally, American investors can tap into foreign markets through brokers trading on overseas exchanges or via American depositary receipts (ADRs), which allow foreign stocks to be traded on U.S. exchanges. Exchange-traded funds (ETFs) also provide broad exposure to many regions and countries.

Venezuela, however, offers none of these options. No ADRs are available on U.S. exchanges, and no Venezuela-focused ETF currently exists, though Teucrium Investment Advisors filed for one earlier this year. That leaves investors with indirect opportunities: U.S.-listed companies that stand to benefit from Venezuela’s potential economic rebound.

These companies fall into four main categories: producers already operating in Venezuela; other major oil firms with outstanding debts from before their exit; oil services companies positioned to win reconstruction contracts; and Gulf Coast refiners designed to process Venezuela’s heavy crude, which could see margin improvements if supply resumes.

Chevron (CVX) remains the sole American oil giant operating in Venezuela. Through joint ventures with PDVSA, the state-owned oil company, Chevron contributes roughly a quarter of the nation’s total output and currently exports about 140,000 barrels per day.

Morningstar analyst Allen Good has highlighted Chevron as the best-positioned among global oil majors to capitalize on Venezuela’s potential recovery, given its established presence and operational advantage in the region.

ConocoPhillips (COP) and Exxon Mobil (XOM) exited Venezuela following the 2007 nationalizations but still hold significant outstanding claims approximately $12 billion and $1.4 billion, respectively for assets seized by the government.

According to JPMorgan analysts, both companies could re‑enter Venezuela’s energy sector to recover these expropriated assets, provided the government opens the door for their return.

Halliburton (HAL) and SLB (SLB) are positioned to play a critical role in Venezuela’s energy recovery. Much of the country’s pipeline network is more than 50 years old, while refineries currently operate at 20% capacity or less.

Industry estimates suggest it could take at least $100 billion over a decade or longer to restore production to 1990s levels. That scale of investment would translate into years of lucrative contracts for oil service firms, provided funding and political stability materialize.

Valero (VLO): Michael Burry, famed for “The Big Short,” disclosed that he has held Valero shares since 2020. He emphasized that Gulf Coast refineries are “purpose-built for Venezuelan heavy crude” and could deliver stronger margins across jet fuel, asphalt, and diesel. Valero operates 15 refineries capable of processing 3.2 million barrels per day of Venezuela’s heavy, sour crude.

Phillips 66 (PSX): Another Gulf Coast refiner positioned for Venezuela’s grades. CEO Mark Lashier noted that the company’s Lake Charles refinery in Louisiana and Sweeny refinery in Texas can process “a couple of hundred thousand barrels per day” of Venezuelan crude. Lashier added that while the refineries are designed for long-term crude processing, realizing Venezuela’s full potential would require “years, if not decades” of upstream investment.

Marathon Petroleum (MPC): The Garyville refinery in Louisiana, the largest heavy crude processor in the region, is well placed to benefit. Analysts estimate it could capture 20% to 30% of any increased Venezuelan crude flows to the Gulf Coast, strengthening its competitive position among U.S. refiners.

The financial outlook remains difficult. With oil prices hovering between $57 and $60 per barrel, committing major capital to a politically unstable environment is hard to justify. Rystad Energy estimates it would take $53 billion over 15 years just to sustain Venezuela’s current production of under 1 million barrels per day. Restoring output to the 1990s peak of 3 million barrels would require $183 billion and at least a decade of investment.

Rystad’s chief economist, Claudio Galimberti, explained that new Venezuelan projects need oil prices around $80 per barrel to be profitable. At $60, the economics simply don’t work.

Opportunity costs also weigh heavily. Bloomberg notes Guyana’s projects break even near $35 per barrel, while Permian Basin wells range between $37 and $48. With cheaper, safer barrels available elsewhere, the case for pouring billions into Venezuela becomes far less compelling.