The author sees Chevron spiking then fading, Halliburton and Schlumberger as oil-service winners, Valero as a heavy-crude refiner, and ConocoPhillips as a restitution watch.
CVX — SHORT The author argues Chevron will spike at Monday's open because it already operates in Venezuela and has infrastructure there, but will then decline as the Venezuela news fades and investors refocus on a flooded oil market. He sees the news as only partially priced in.
I can see a spike with CVX on opening on Monday but I think when the news fades it could go down
HAL — LONG Halliburton will be sent to repair pipelines and pumps in Venezuela, already has infrastructure there, will support Chevron's drilling, and avoids oil price volatility because it sells services rather than oil. The author views it as a profitable 6-12 month hold.
Halliburton HAL will be sent to repair the existing pipelines and pump. HAL will fix everything and they already have existing infrastructure in Venezuela.
SLB — LONG Schlumberger has unique technology to detect Venezuela's remaining oil fields including hard-to-reach places and plans extraction and mapping, making it an excellent play that is insulated from oil price swings. The author sees it as a good 6-18 month hold.
SLB is the “brains” of the operation, SLB has the technology to detect all of Venezuelas remaining oil field, especially the oil in the hard to reach places and SLB plans the extraction and maps everything. No company has the technology SLB does.
VLO — LONG Valero specializes in refining Venezuela's heavy crude, and the author expects its profits to spike significantly over the long term as Venezuelan crude becomes available.
One refinery in particular I am looking at it Valero VLO, they specialize in refining Venezuela heavy crude products, this could be a good long term play as profits will spike significantly long term.
COP — WATCH ConocoPhillips had assets seized by the Maduro regime and is owed $10 billion by Venezuela, so the author believes it will definitely get restitution, making it a watch.
Another one to watch could be ConocoPhillips COP as they were an oil company involved in Venezuela many years ago and their equipment and assets were seized under the Moduro regime and are owed $10 billion because of this by Venezuela so I believe they will definitely get restitution.