Jim Cramer Explains the Risks and Reality of Chevron’s Venezuela Exposure

Chevron Corporation (NYSE:CVX) is one of the stocks Jim Cramer offered insights on. Cramer highlighted the company’s interest in Venezuela, as he said:

“You have Chevron with its Venezuelan interest, it’s held for ages. Now, it might get more than the 100,000 barrels per day that it currently pumps from the once great Venezuelan reserves. The country only pumps about 900,000 barrels a day, and most of it goes to China. Maybe that contract can be broken. Venezuela owes so much to China, as much as $50 billion. And who knows if Maduro’s replacement will honor those debts…

Venezuela nationalized most of the oil production years ago. You’d have to privatize it again, which would prove very difficult, then there’s no money upfront for any of these projects. And most important, oil’s been going down in price, so there could be very big losses for all concerned except the refiners and Chevron. Then again, if Chevron were to double production, you know what? It would still be just a drop in the bucket for that oil giant.”

Photo by Luis Ramirez on Unsplash

Chevron Corporation (NYSE:CVX) is an integrated energy company that explores, produces, refines, and markets oil, natural gas, and petrochemical products.

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Disclosure: None. This article is originally published at Insider Monkey.