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Have followers and something to sell? TikTok may want to make a deal

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Have followers and something to sell? TikTok may want to make a deal

It is just past 10 p.m. and Aaliyah Arnold, the 20-year-old founder of BossUp Cosmetics, is selling to the TikTok universe.

As she livestreams from a Culver City filming location, about 750 people around the world watch her announce a flash sale for a mystery box containing six to eight BossUp products. Typically priced at $101.96, the bundle is now 49% off — for the next few minutes only. On viewers’ smartphone screens, a countdown timer and a red “Buy” button appear, along with a flurry of heart emojis.

“Make sure you’re shopping shopping shopping till you can’t shop no more!” Arnold, in a light pink Santa Claus sweatshirt and a full face of glam, says into one of several cameras arranged around her. To the side of the makeshift stage, members of a production crew, fueled by energy drinks and a steady stream of fast-food deliveries, ready the next group of products.

Arnold and co-host Daniel Rene hype heavily discounted BossUp products during a marathon TikTok livestream filmed in Culver City last month.

(Genaro Molina / Los Angeles Times)

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Arnold is 10 hours into a marathon selling spree and still has two hours to go. Like a Gen Z version of QVC, TikTok Live shopping events are part of a push by the social media platform to combine the convenience of mobile commerce and the frenzied consumerism of limited-time deals with interactive, unscripted entertainment. By the time her livestream ends at midnight, Arnold will have racked up $70,000 in sales and 10,000 new followers.

TikTok launched TikTok Shop — a feature that enables users to buy directly within the app — in the U.S. last year, and since then small-business owners, celebrities and major retailers have been using the livestreaming function to boost their sales and engage with customers in real time. Brands might use a Live to unveil a line of boots and take questions from viewers on sizing, or to demonstrate how to use a new hairstyling tool or kitchen gadget.

Although anyone with at least 1,000 followers can livestream themselves, TikTok has been reaching out to influential users like Arnold who have large followings and a proven ability to sell and inviting them to be a part of its TikTok Shop Partner program.

In exchange for a cut of the action, the company offers professional services to help sellers turbocharge their businesses. That includes helping them produce, as Arnold described, “huge mega livestreams” — splashy multi-hour events professionally filmed in studios, event spaces and homes around Los Angeles.

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Aaliyah Arnold

A look at how Arnold’s recent TikTok Live shopping event appeared on viewers’ mobile screens around the world. Live selling enables customers to interact with sellers in real time.

(TikTok)

TikTok’s push into the e-commerce market comes amid a backdrop of uncertainty over the company’s future in the country. The app faces a nationwide ban after years of back and forth with the U.S. government over national security concerns; the ban is scheduled to go into effect Jan. 19 unless TikTok’s Chinese parent company, ByteDance, divests its U.S. operations.

Online live selling has been a retail phenomenon for years in China but has been slower to catch on in the U.S., where it accounts for only a tiny fraction of e-commerce revenue. That’s despite the 1990s popularity of television channels like QVC and the Home Shopping Network, and more recent live-shopping efforts by tech companies and retail brands including Amazon. In 2022, Facebook shut down its live-selling feature after two years; Instagram pulled the plug a few months later.

Livestreaming e-commerce was estimated to total $31.7 billion in the U.S. last year, according to Coresight Research.

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“This pales in comparison to China’s livestreaming market, which was valued at $512 billion in 2022, revealing the significant growth opportunity in the U.S. market,” the firm said.

With a built-in audience of 170 million American users, many of them extremely online young adults well-versed in shopping on their mobile devices, TikTok is trying to push the watch-and-shop trend into the mainstream.

TikTok creator Aaliyah Arnold

Rene and Arnold demonstrate BossUp’s lip oil to viewers during her livestream.

(Genaro Molina / Los Angeles Times)

Live selling is “redefining the future of shopping on TikTok Shop,” said Nico Le Bourgeois, head of U.S. operations for TikTok Shop. He said the number of Live shopping sessions hosted on the app every month has nearly tripled in the last year.

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Longer and higher-quality Lives drive more sales on TikTok Shop; that’s a win for sellers and for the social media company, which takes a single-digit percentage cut of sales on the platform, set at 6% and called a referral fee. Le Bourgeois declined to say how much revenue live selling has generated but said the number of people shopping on TikTok Shop every month has nearly tripled since its launch 15 months ago.

When they told me, “Can you do Live for 12 hours?” I was like, “You guys are sick, no.”

— Magdalena Peña, founder of beauty and hair-care brand Simply Mandys

TikTok Lives have become a pillar of brands’ sales strategies for the holiday season, and cheerfully chaotic livestreams are being held around the clock. From Nov. 13 through Dec. 2, nearly half a million Live shopping sessions were hosted on TikTok, for a total of more than 660,000 hours.

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On Nov. 24, rapper Nicki Minaj hosted a two-hour livestream for her line of press-on nails that became the highest-viewed TikTok Shop Live ever, with 80,000 viewers simultaneously watching at one point. A few days later, Canvas Beauty Brand founder Stormi Steele surpassed $2 million in sales during her Black Friday livestream, a new record for a single TikTok Live.

The foray into e-commerce marks an evolution for a platform that had been known primarily as a place to endlessly scroll through frothy short-form videos. In short order, the company has shown that it “isn’t just entertainment — it’s a retail accelerator,” Oliver Chen, a retail analyst and Columbia Business School professor, wrote last month.

Arnold started BossUp when she was 14 and joined TikTok a year later in 2019. She would spontaneously host livestreams by broadcasting herself from her iPhone, which grew her fan base and got the word out about her burgeoning cosmetics brand.

But if viewers wanted to buy products, Arnold had to direct them to BossUp’s website because TikTok wasn’t shoppable back then. Many wouldn’t follow through.

TikTok creator Aaliyah Arnold is all smiles before selling her brand of makeup

Arnold founded BossUp when she was 14 and joined TikTok a year later. She would casually livestream from her iPhone, which grew her fan base and got the word out about her burgeoning beauty company.

(Genaro Molina / Los Angeles Times)

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After the introduction of TikTop Shop in September 2023, BossUp sales swelled and Arnold’s casual livestreams caught the attention of TikTok. The company emailed Arnold with an offer to set her up with a Los Angeles agency called Yowant that specializes in working with online creators.

Arnold now flies from her home near Houston to L.A. every few weeks to host lengthy TikTok Live shopping sessions produced by the agency, which negotiates payment directly with its clients. Yowant provides her with producers and engineers, and assembles a stage with lighting, cameras and large monitors that display questions and comments as soon as viewers type them.

TikTok Shop employees, meanwhile, help her decide on a sales strategy for each Live, planning out the optimal date, a catchy soundtrack, how steep the discounts should be and which third-party affiliate products she should sell alongside her own, for which she receives a commission.

TikTok Shop has built me up like crazy.

— Aaliyah Arnold, founder of BossUp Cosmetics

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Right at noon on the day of her Live last month in Culver City, the crew lets out a roar of cheers as the cameras are turned on.

“Deals and sales and giveaways — you don’t want to miss it, join in join in join in!” Arnold shouts over the commotion. “The biggest Live we’ve ever done, it’s starting right now…. Get a drink, get a snack, let’s go!”

“This is so overstimulating,” types one viewer.

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Arnold and co-host Daniel Rene kick things off with a flash deal for BossUp’s Color Changing Lip Oil, usually $12.99 but marked down to $5. “Tap tap tap, shop shop shop!” she says before reminding viewers that shipping is free. Orders begin to pour in.

Seconds later a bullhorn blares, signaling the end of the deal, and Arnold is immediately on to the next discount. She does several makeup tutorials during the Live, deftly lining her lips a deep mahogany shade as a cameraman zooms in on her voluminous pout.

“People pay good money for lips like that!” Rene says approvingly.

In an interview with The Times before the livestream began, Arnold said TikTok Shop “has built me up like crazy.” She declined to provide revenue figures, but said that in the 12 months after TikTok Shop was introduced, BossUp sales increased nearly 500% compared with the 12 months prior.

That enabled her to purchase a house in June and bring on family members as employees. She bought a truck for her grandfather and a packaging warehouse for her fast-growing business.

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TikTok creator Aaliyah Arnold sells her brand of makeup

Arnold’s recent TikTok Live in Culver City brought in $70,000 in sales over 12 hours.

(Genaro Molina / Los Angeles Times)

Despite the uncertainty around TikTok’s future, business owners are forging ahead with all-out Live sessions in the weeks leading up to Christmas.

Over six days starting the day before Thanksgiving, Magdalena Peña, the founder of beauty and hair-care brand Simply Mandys, hosted three TikTok Live sessions for a combined 29 hours. The first brought in more than $1 million in sales.

Like Arnold, Peña was approached by employees at TikTok Shop shortly after the e-commerce feature was rolled out.

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“When they told me, ‘Can you do Live for 12 hours?’ I was like, ‘You guys are sick, no,’” she recalled. “There’s no way.”

The professional services and other perks that came with TikTok’s support, however, persuaded her to reconsider. The company, for example, offered free advertising and to pay for 30% discounts for first-time buyers.

There were some stipulations: Peña, 37, could no longer include her daughter in her livestreams because she was underage; wasn’t able to showcase products not linked to TikTok Shop; and had to ship orders within two days.

“The better you follow the rules,” she said, “the more TikTok helps you.”

Magdalena Peña

Magdalena Peña, the founder of beauty and hair-care company Simply Mandys, during a TikTok Live last month.

(TikTok)

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Since partnering with the company, she has filmed TikTok Live shopping sessions in Culver City and West Hollywood. Peña is responsible for paying her travel costs to the Live sessions, driving with her husband and business partner from their home in Sanger, Calif.

That is, until a few weeks ago, when the couple bought a small plane. Simply Mandys’ revenue through November of this year was already quadruple what it was in 2023 — a jump Peña credits to her Live events on TikTok, which she called a “total game-changer.”

She said she is still adjusting to the frequent travel and the long days of filming, finding motivation in the adrenaline rush that comes when she sees the sales figures climb during her Lives.

“I do everything possible to hit the goal,” she said. “I tell my team, ‘I’m not leaving here until I hit that number.’”

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Commentary: A leading roboticist punctures the hype about self-driving cars, AI chatbots and humanoid robots

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Commentary: A leading roboticist punctures the hype about self-driving cars, AI chatbots and humanoid robots

It may come to your attention that we are inundated with technological hype. Self-driving cars, human-like robots and AI chatbots all have been the subject of sometimes outlandishly exaggerated predictions and promises.

So we should be thankful for Rodney Brooks, an Australian-born technologist who has made it one of his missions in life to deflate the hyperbole about these and other supposedly world-changing technologies offered by promoters, marketers and true believers.

As I’ve written before, Brooks is nothing like a Luddite. Quite the contrary: He was a co-founder of IRobot, the maker of the Roomba robotic vacuum cleaner, though he stepped down as the company’s chief technology officer in 2008 and left its board in 2011. He’s a co-founder and chief technology officer of RobustAI, which makes robots for factories and warehouses, and former director of computer science and artificial intelligence labs at Massachusetts Institute of Technology.

Having ideas is easy. Turning them into reality is hard. Turning them into being deployed at scale is even harder.

— Rodney Brooks

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In 2018, Brooks published a post of dated predictions about the course of major technologies and promised to revisit them annually for 32 years, when he would be 95. He focused on technologies that were then — and still are — the cynosures of public discussion, including self-driving cars, human space travel, AI bots and humanoid robots.

“Having ideas is easy,” he wrote in that introductory post. “Turning them into reality is hard. Turning them into being deployed at scale is even harder.”

Brooks slotted his predictions into three pigeonholes: NIML, for “not in my lifetime,” NET, for “no earlier than” some specified date, and “by some [specified] date.”

On Jan. 1 he published his eighth annual predictions scorecard. He found that over the years “my predictions held up pretty well, though overall I was a little too optimistic.”

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For example in 2018 he predicted “a robot that can provide physical assistance to the elderly over multiple tasks [e.g., getting into and out of bed, washing, using the toilet, etc.]” wouldn’t appear earlier than 2028; as of New Year’s Day, he writes, “no general purpose solution is in sight.”

The first “permanent” human colony on Mars would come no earlier than 2036, he wrote then, which he now calls “way too optimistic.” He now envisions a human landing on Mars no earlier than 2040, and the settlement no earlier than 2050.

A robot that seems “as intelligent, as attentive, and as faithful, as a dog” — no earlier than 2048, he conjectured in 2018. “This is so much harder than most people imagine it to be,” he writes now. “Many think we are already there; I say we are not at all there.” His verdict on a robot that has “any real idea about its own existence, or the existence of humans in the way that a 6-year-old understands humans” — “Not in my lifetime.”

Brooks points out that one way high-tech promoters finesse their exaggerated promises is through subtle redefinition. That has been the case with “self-driving cars,” he writes. Originally the term referred to “any sort of car that could operate without a driver on board, and without a remote driver offering control inputs … where no person needed to drive, but simply communicated to the car where it should take them.”

Waymo, the largest purveyor of self-driven transport, says on its website that its robotaxis are “the embodiment of fully autonomous technology that is always in control from pickup to destination.” Passengers “can sit in the back seat, relax, and enjoy the ride with the Waymo Driver getting them to their destination safely.”

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Brooks challenges this claim. One hole in the fabric of full autonomy, he observes, became clear Dec. 20, when a power blackout blanketing San Francisco stranded much of Waymo’s robotaxi fleet on the streets. Waymos, which can read traffic lights, clogged intersections because traffic lights went dark.

The company later acknowledged its vehicles occasionally “require a confirmation check” from humans when they encounter blacked-out traffic signals or other confounding situations. The Dec. 20 blackout, Waymo said, “created a concentrated spike in these requests,” resulting in “a backlog that, in some cases, led to response delays contributing to congestion on already-overwhelmed streets.”

It’s also known that Waymo pays humans to physically deal with vehicles immobilized by — for example — a passenger’s failure to fully close a car door when exiting. They can be summoned via the third-party app Honk, which chiefly is used by tow truck operators to find stranded customers.

“Current generation Waymos need a lot of human help to operate as they do, from people in the remote operations center to intervene and provide human advice for when something goes wrong, to Honk gig workers scampering around the city,” Brooks observes.

Waymo told me its claim of “fully autonomous” operation is based on the fact that the onboard technology is always in control of its vehicles. In confusing situations the car will call on Waymo’s “fleet response” team of humans, asking them to choose which of several optional paths is the best one. “Control of the vehicle is always with the Waymo Driver” — that is, the onboard technology, spokesman Mark Lewis told me. “A human cannot tele-operate a Waymo vehicle.”

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As a pioneering robot designer, Brooks is particularly skeptical about the tech industry’s fascination with humanoid robots. He writes from experience: In 1998 he was building humanoid robots with his graduate students at MIT. Back then he asserted that people would be naturally comfortable with “robots with humanoid form that act like humans; the interface is hardwired in our brains,” and that “humans and robots can cooperate on tasks in close quarters in ways heretofore imaginable only in science fiction.”

Since then it has become clear that general-purpose robots that look and act like humans are chimerical. In fact in many contexts they’re dangerous. Among the unsolved problems in robot design is that no one has created a robot with “human-like dexterity,” he writes. Robotics companies promoting their designs haven’t shown that their proposed products have “multi-fingered dexterity where humans can and do grasp things that are unseen, and grasp and simultaneously manipulate multiple small objects with one hand.”

Two-legged robots have a tendency to fall over and “need human intervention to get back up,” like tortoises fallen on their backs. Because they’re heavy and unstable, they are “currently unsafe for humans to be close to when they are walking.”

(Brooks doesn’t mention this, but even in the 1960s the creators of “The Jetsons” understood that domestic robots wouldn’t rely on legs — their robot maid, Rosie, tooled around their household on wheels, a perception that came as second nature to animators 60 years ago but seems to have been forgotten by today’s engineers.)

As Brooks observes, “even children aged 3 or 4 can navigate around cluttered houses without damaging them. … By age 4 they can open doors with door handles and mechanisms they have never seen before, and safely close those doors behind them. They can do this when they enter a particular house for the first time. They can wander around and up and down and find their way.

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“But wait, you say, ‘I’ve seen them dance and somersault, and even bounce off walls.’ Yes, you have seen humanoid robot theater. “

Brooks’ experience with artificial intelligence gives him important insights into the shortcomings of today’s crop of large language models — that’s the technology underlying contemporary chatbots — what they can and can’t do, and why.

“The underlying mechanism for Large Language Models does not answer questions directly,” he writes. “Instead, it gives something that sounds like an answer to the question. That is very different from saying something that is accurate. What they have learned is not facts about the world but instead a probability distribution of what word is most likely to come next given the question and the words so far produced in response. Thus the results of using them, uncaged, is lots and lots of confabulations that sound like real things, whether they are or not.”

The solution is not to “train” LLM bots with more and more data, in the hope that eventually they will have databases large enough to make their fabrications unnecessary. Brooks thinks this is the wrong approach. The better option is to purpose-build LLMs to fulfill specific needs in specific fields. Bots specialized for software coding, for instance, or hardware design.

“We need guardrails around LLMs to make them useful, and that is where there will be lot of action over the next 10 years,” he writes. “They cannot be simply released into the wild as they come straight from training. … More training doesn’t make things better necessarily. Boxing things in does.”

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Brooks’ all-encompassing theme is that we tend to overestimate what new technologies can do and underestimate how long it takes for any new technology to scale up to usefulness. The hardest problems are almost always the last ones to be solved; people tend to think that new technologies will continue to develop at the speed that they did in their earliest stages.

That’s why the march to full self-driving cars has stalled. It’s one thing to equip cars with lane-change warnings or cruise control that can adjust to the presence of a slower car in front; the road to Level 5 autonomy as defined by the Society of Automotive Engineers — in which the vehicle can drive itself in all conditions without a human ever required to take the wheel — may be decades away at least. No Level 5 vehicles are in general use today.

Believing the claims of technology promoters that one or another nirvana is just around the corner is a mug’s game. “It always takes longer than you think,” Brooks wrote in his original prediction post. “It just does.”

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Versant launches, Comcast spins off E!, CNBC and MS NOW

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Versant launches, Comcast spins off E!, CNBC and MS NOW

Comcast has officially spun off its cable channels, including CNBC and MS NOW, into a separate company, Versant Media Group.

The transaction was completed late Friday. On Monday, Versant took a major tumble in its stock market debut — providing a key test of investors’ willingness to hold on to legacy cable channels.

The initial outlook wasn’t pretty, providing awkward moments for CNBC anchors reporting the story.

Versant fell 13% to $40.57 a share on its inaugural trading day. The stock opened Monday on Nasdaq at $45.17 per share.

Comcast opted to cast off the still-profitable cable channels, except for the perennially popular Bravo, as Wall Street has soured on the business, which has been contracting amid a consumer shift to streaming.

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Versant’s market performance will be closely watched as Warner Bros. Discovery attempts to separate its cable channels, including CNN, TBS and Food Network, from Warner Bros. studios and HBO later this year. Warner Chief Executive David Zaslav’s plan, which is scheduled to take place in the summer, is being contested by the Ellison family’s Paramount, which has launched a hostile bid for all of Warner Bros. Discovery.

Warner Bros. Discovery has agreed to sell itself to Netflix in an $82.7-billion deal.

The market’s distaste for cable channels has been playing out in recent years. Paramount found itself on the auction block two years ago, in part because of the weight of its struggling cable channels, including Nickelodeon, Comedy Central and MTV.

Management of the New York-based Versant, including longtime NBCUniversal sports and television executive Mark Lazarus, has been bullish on the company’s balance sheet and its prospects for growth. Versant also includes USA Network, Golf Channel, Oxygen, E!, Syfy, Fandango, Rotten Tomatoes, GolfNow, GolfPass and SportsEngine.

“As a standalone company, we enter the market with the scale, strategy and leadership to grow and evolve our business model,” Lazarus, who is Versant’s chief executive, said Monday in a statement.

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Through the spin-off, Comcast shareholders received one share of Versant Class A common stock or Versant Class B common stock for every 25 shares of Comcast Class A common stock or Comcast Class B common stock, respectively. The Versant shares were distributed after the close of Comcast trading Friday.

Comcast gained about 3% on Monday, trading around $28.50.

Comcast Chairman Brian Roberts holds 33% of Versant’s controlling shares.

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Ties between California and Venezuela go back more than a century with Chevron

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Ties between California and Venezuela go back more than a century with Chevron

As a stunned world processes the U.S. government’s sudden intervention in Venezuela — debating its legality, guessing who the ultimate winners and losers will be — a company founded in California with deep ties to the Golden State could be among the prime beneficiaries.

Venezuela has the largest proven oil reserves on the planet. Chevron, the international petroleum conglomerate with a massive refinery in El Segundo and headquartered, until recently, in San Ramon, is the only foreign oil company that has continued operating there through decades of revolution.

Other major oil companies, including ConocoPhillips and Exxon Mobil, pulled out of Venezuela in 2007 when then-President Hugo Chávez required them to surrender majority ownership of their operations to the country’s state-controlled oil company, PDVSA.

But Chevron remained, playing the “long game,” according to industry analysts, hoping to someday resume reaping big profits from the investments the company started making there almost a century ago.

Looks like that bet might finally pay off.

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In his news conference Saturday, after U.S. Special Forces snatched Venezuelan President Nicolás Maduro and his wife in Caracas and extradited them to face drug-trafficking charges in New York, President Trump said the U.S. would “run” Venezuela and open more of its massive oil reserves to American corporations.

“We’re going to have our very large U.S. oil companies, the biggest anywhere in the world, go in, spend billions of dollars, fix the badly broken infrastructure, the oil infrastructure, and start making money for the country,” Trump said during a news conference Saturday.

While oil industry analysts temper expectations by warning it could take years to start extracting significant profits given Venezuela’s long-neglected, dilapidated infrastructure, and everyday Venezuelans worry about the proceeds flowing out of the country and into the pockets of U.S. investors, there’s one group who could be forgiven for jumping with unreserved joy: Chevron insiders who championed the decision to remain in Venezuela all these years.

But the company’s official response to the stunning turn of events has been poker-faced.

“Chevron remains focused on the safety and well-being of our employees, as well as the integrity of our assets,” spokesman Bill Turenne emailed The Times on Sunday, the same statement the company sent to news outlets all weekend. “We continue to operate in full compliance with all relevant laws and regulations.”

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Turenne did not respond to questions about the possible financial rewards for the company stemming from this weekend’s U.S. military action.

Chevron, which is a direct descendant of a small oil company founded in Southern California in the 1870s, has grown into a $300-billion global corporation. It was headquartered in San Ramon, just outside of San Francisco, until executives announced in August 2024 that they were fleeing high-cost California for Houston.

Texas’ relatively low taxes and light regulation have been a beacon for many California companies, and most of Chevron’s competitors are based there.

Chevron began exploring in Venezuela in the early 1920s, according to the company’s website, and ramped up operations after discovering the massive Boscan oil field in the 1940s. Over the decades, it grew into Venezuela’s largest foreign investor.

The company held on over the decades as Venezuela’s government moved steadily to the left; it began to nationalize the oil industry by creating a state-owned petroleum company in 1976, and then demanded majority ownership of foreign oil assets in 2007, under then-President Hugo Chávez.

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Venezuela has the world’s largest proven crude oil reserves — meaning they’re economical to tap — about 303 billion barrels, according to the U.S. Energy Information Administration.

But even with those massive reserves, Venezuela has been producing less than 1% of the world’s crude oil supply. Production has steadily declined from the 3.5 million barrels per day pumped in 1999 to just over 1 million barrels per day now.

Currently, Chevron’s operations in Venezuela employ about 3,000 people and produce between 250,000 and 300,000 barrels of oil per day, according to published reports.

That’s less than 10% of the roughly 3 million barrels the company produces from holdings scattered across the globe, from the Gulf of Mexico to Kazakhstan and Australia.

But some analysts are optimistic that Venezuela could double or triple its current output relatively quickly — which could lead to a windfall for Chevron.

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The Associated Press contributed to this report.

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