Chevron JV Launches New Drilling Campaign In Venezuela: Report
Portfolio Pulse from Lekha Gupta
Chevron's joint venture with PDVSA, Petroindependencia, has launched a new drilling campaign in Venezuela, following the U.S. easing oil sanctions on Venezuela. This move is part of Chevron's plan to boost its Venezuela crude output by 65,000 barrels per day by the end of the year. The campaign includes drilling 17 wells, with the CMI14 well being the first. Investors can gain exposure to Chevron through SPDR Select Sector Fund – Energy Select Sector (XLE) and iShares U.S. Energy ETF (IYE). Chevron's stock closed higher by 0.85% at $159.08.

April 02, 2024 | 11:08 am
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POSITIVE IMPACT
Chevron's joint venture in Venezuela launches a new drilling campaign, aiming to increase crude output significantly.
The launch of the new drilling campaign by Chevron's JV is a significant development, likely to boost investor confidence and potentially Chevron's stock price in the short term, given the expected increase in crude output.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
iShares U.S. Energy ETF offers investors a way to benefit from Chevron's ventures in Venezuela.
Given that IYE holds Chevron shares, the ETF is likely to experience positive effects from Chevron's successful drilling campaign and planned production increase in Venezuela.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Investors can gain exposure to Chevron's positive developments in Venezuela through the SPDR Select Sector Fund – Energy Select Sector.
As XLE includes Chevron in its holdings, positive developments for Chevron in Venezuela are likely to have a favorable impact on XLE's performance, attracting investor interest.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70