Chevron (CVX) Bets $7 Billion on Oil Supply Expansion Amid Shortage

Chevron (CVX) trades at $214, up 44% year to date, with Q2 free cash flow reaching $18 billion and a dividend yield of 3%. CEO Mike Wirth highlights that depleted strategic reserves could leave oil prices vulnerable, with Brent crude recently settling at $109.51, up from $61.35 at the end of 2025. The company plans to expand its Venezuelan operations to potentially double output, funded by cash from existing ventures, avoiding any diversion of capital from other projects. This increase in capacity could help maintain supply stability, which is important for investors concerned about oil price fluctuations and supply disruptions.