Energy stocks surged Monday as investors welcomed President Donald Trump's stated intent to tap Venezuela's vast oil reserves, raising expectations that US energy companies could eventually return to one of the world's most resource-rich — but long-neglected — oil producers.
Chevron emerged as the standout gainer, with its shares jumping as much as 10% in early trade before paring gains to trade around 5% higher. Chevron is currently the only major US oil company still operating in Venezuela and exporting crude from the country. Shares of Exxon Mobil and ConocoPhillips rose about 3% each, buoyed by speculation that restrictions barring US firms from Venezuela's oil fields could be eased.
Oilfield services companies rallied even more sharply. Baker Hughes gained around 5%, SLB surged roughly 12%, and Halliburton climbed nearly 10%, reflecting expectations that any revival of Venezuelan production would require extensive drilling and infrastructure work.
Crude prices were choppy overnight but moved higher during US trading hours. Both West Texas Intermediate (WTI) and Brent crude rose by more than $1 a barrel, trading about 1.6% higher by mid-morning.
The optimism spilled over into the broader market. The Dow Jones Industrial Average soared more than 815 points, or about 1.7%, outperforming other major benchmarks. The S&P 500 and the Nasdaq Composite each advanced around 0.7%. By early afternoon, Chevron was the best-performing stock on the 30-member Dow index.
Energy ranked among the top-performing sectors in the S&P 500, alongside financials and consumer discretionary stocks. Overseas, markets in Europe and Asia also posted gains as investors appeared reassured that political upheaval in Venezuela had not escalated into wider regional instability. Monday was the first full trading session following the holiday period.
The rally followed remarks by Trump over the weekend, after US forces captured deposed Venezuelan leader Nicolás Maduro. Speaking at a press conference on Saturday, Trump said American oil companies would be central to rebuilding Venezuela's severely damaged energy sector.
"We're going to have our very large United States oil companies, the biggest anywhere in the world, go in, spend billions of dollars, fix the badly broken infrastructure and start making money for the country," Trump said, told at a press conference Saturday, reported NBC News.
Venezuela holds the world's largest proven oil reserves, exceeding those of Saudi Arabia, Iraq, the United Arab Emirates and Russia. Yet years of mismanagement, corruption, underinvestment and US sanctions have reduced oil production to a fraction of its potential. Output has plunged from more than 3 million barrels per day in the late 1990s to well below 1 million barrels per day in recent years.
Despite the upbeat market response, analysts cautioned that translating political statements into meaningful increases in oil supply will take time.
"Venezuela's current oil exports are small in the global context, and any effort to develop Venezuela's world-leading oil reserves at scale will necessarily be a long-term story due to poor infrastructure," Evercore ISI analyst Matthew Aks wrote in a note to clients over the weekend, according to NBC News.
Trump himself acknowledged the depth of the decline, saying Venezuela has been "pumping almost nothing by comparison to what they could have been," told at the same press conference, reported by NBC News.
Key uncertainties remain, including whether the Trump administration will lift long-standing US sanctions and remove restrictions on Venezuelan oil shipments — steps analysts say are essential for attracting large-scale foreign investment. As reported by The Guardian, rebuilding refineries, pipelines and export terminals could take many years and require tens of billions of dollars in capital.
