A lot of work must be done to revive Venezuela’s crude oil industry, which has suffered from years of poor management and underinvestment. Exports have rebounded sharply in early 2026, but much more could be done. Today, we outline the additional steps that could boost export volumes.
U.S. crude oil production averaged a record 13.6 MMb/d in 2025, up nearly 1.6 MMb/d from 2023, but crude export volumes remained remarkably stable — at or very near 4.1 MMb/d — until a recent Iran-related surge. A key reason: “capacity creep” expansion projects at several Gulf Coast refineries.
Hess Midstream said during its earnings call May 4 that it expected to reduce its capital expenditures to $100 million in 2026, about one-third less than its previous guidance, reflecting Chevron’s move to longer laterals in the Bakken and the completion of a second compressor station that is now online.
Chevron reported sharply lower Q1 2026 earnings during its investor call May 1, weighed down by a $2.9 billion charge related to financial hedges and inventory accounting adjustments. Excluding those factors, earnings rose, helped by higher oil and gas production and stronger refining margins.
U.S. refineries are, of course, far less dependent on crude oil from the Middle East than they were before the Shale Revolution. But the cutoff in oil supplies from the Persian Gulf is forcing several U.S. refiners to look elsewhere for the mostly medium-sour crude they had been sourcing from the region.
There’s no shortage of work to be done to revive Venezuela’s crude oil industry, much of which suffered from years of poor management and minimal investment. One rehabilitation effort that could deliver a lot of bang for the buck would be to repair and restart the industry’s crude upgraders.
Chevron could increase its crude oil production in Venezuela by up to 50% over the next 18 to 24 months, Chairman and CEO Mike Wirth said during the company’s quarterly earnings call on Friday, January 30.
Venezuela took center stage last weekend when President Trump removed and arrested President Nicolás Maduro, putting a spotlight on the country’s oil resources and production. Today we take a deep dive into how we think the upheaval could reshape crude oil flows, price differentials, refining slates and export economics.
Crude oil production in the U.S.’s portion of the Gulf of Mexico is poised to top 2 MMb/d for the first time in six years — and only the third time ever. New projects keep coming online. And a newcomer to the U.S. GOM, U.K.-based Harbour Energy, just announced a deal to acquire LLOG Exploration.
Phillips 66’s Sweeny Complex includes refining, midstream and petrochemical units and illustrates how a well-designed facility can deliver operating and financial efficiencies.
