Business
Paramount was poised to buy Warner Bros. Discovery. What went wrong?
Oracle founder Larry Ellison was on the cusp of conquering Hollywood.
Just four months earlier, he had bankrolled his son David’s $8-billion acquisition of the storied Paramount Pictures.
Now the Ellison family had designs on scooping up Warner Bros. Discovery, too, offering to buy the entire company for at least $60 billion. The bold play had suddenly thrust this Silicon Valley titan and his son, David — chief executive of the newly-merged Paramount Skydance — into one of the most powerful positions in the film and TV industry.
By most outward appearances, Warner Bros. Discovery was theirs for the taking. Wall Street analysts, Hollywood insiders and even some of the other bidders expected Paramount to prevail. After all, it was backed by one of the world’s richest men. And it even had the blessing of President Trump, who openly expressed his preference for the Paramount bid.
But Ellison’s crowning moment was ruined when Netflix swooped in Friday announcing its own blockbuster deal.
The streamer snapped up Warner Bros. in a $82.7-billion deal for the Burbank-based film and television studios, HBO Max and HBO, delivering a massive blow to Ellison and his son, David.
In the Paramount bid, Larry Ellison was once again the primary backer. But the Warner Bros. Discovery board believed the Netflix offer of $27.75 a share, which did not include CNN or other basic cable channels, was a better deal for shareholders.
The announcement stunned many who had predicted that Paramount would prevail in the contentious auction. It also marked a rare defeat for Ellison, who was outmaneuvered by none other than Netflix’s co-Chief Executive Ted Sarandos and his team.
Analysts and multiple auction insiders told The Times several factors complicated the process, including Paramount’s low-ball offers and hubris.
“This is a bad day for for Paramount and for the Ellisons,” said Lloyd Greif, president and chief executive of Greif & Co., a Los Angeles-based investment bank. “They were overconfident because they underestimated the competition.”
Representatives of Paramount and Warner declined to comment. A representative for Ellison at Oracle did not respond to requests for comment.
Characteristically, Ellison is not backing down, say sources close to the tech mogul who were not authorized to comment. Paramount — whose chief legal counsel is the former head of the U.S. Justice Department’s antitrust division during the first Trump term — is preparing for a legal battle with Warner Bros. over the handling of the auction. They are expected to urge the Securities & Exchange Commission and the Department of Justice to investigate claims that the Netflix deal would be anticompetitive and harmful to consumers and theater owners.
Paramount’s lawyers sent Warner Bros. Discovery Chief Executive David Zaslav a blistering letter Wednesday, accusing the studio of rigging the process in favor of a “single bidder” and “abdicating its duties to stockholders.”
What went wrong
Several sources said Paramount’s first mistake was making low-ball offers.
Paramount submitted three unsolicited bids by mid-October, the first for $19 a share. Warner’s board of directors unanimously rejected all of the bids as too low.
Top Warner Bros. executives were incensed, feeling that the Ellisons had just shown up in Hollywood and now were throwing their weight around to take advantage of Warner Bros.’ struggles.
Paramount had Larry Ellison guaranteeing its Warner bid with $30 billion of his Oracle stock, according to one knowledgeable person who was not authorized to comment.
But as the price of Warner went higher, Paramount needed considerably more money. It turned to private equity firm Apollo Global Management.
In late October, Warner opened the bidding to other suitors. Netflix and Comcast jumped in. Paramount’s leaders seemed to underestimate Netflix, according to several people close to the auction. A senior Netflix executive had publicly downplayed its interest.
“Maybe Netflix was playing possum,” said Paul Hardart, a professor at New York University’s Stern School of Business.
Paramount “thought they were the only game in town,” said a person close to the auction who was not authorized to comment.
At one point, Paramount’s team seemed more concerned about the movements of Comcast Chairman Brian Roberts, who had visited Saudi Arabia, reportedly on theme park business.
David Ellison and RedBird’s Gerry Cardinale were scrambling to line up Middle Eastern sovereign wealth funds to provide more financing for their offer.
“They were going around trying to get money from elsewhere and that probably sowed some doubts among the board at Warner Bros. Discovery,” Hardart said.
Paramount’s negotiations with wealth funds for Saudi Arabia, Qatar and the United Arab Emirates were widely noted, people close to the auction said.
“It invited skepticism of the strength of the Paramount commitment,” said C. Kerry Fields, a business law professor at the USC Marshall School of Business.
When Oracle stock started dropping amid concerns of an AI bubble, it left Paramount‘s bid in a more precarious position.
Worries over Trump ties
In Hollywood, Larry Ellison’s close ties to Trump dampened enthusiasm for Paramount’s bid.
Oracle is among a group of U.S. investors expected to hold a majority stake in the U.S. business of TikTok, after the hugely popular video sharing app is spun out from Chinese parent company ByteDance — in no small part due to the influence and support from Trump.
This summer, Paramount agreed to pay $16 million to settle Trump’s lawsuit against CBS for its edits of a “60 Minutes” interview with Kamala Harris, as it was seeking to gain regulatory approval for the Ellison Skydance takeover. Days later, Paramount’s CBS announced that it was ending Stephen Colbert’s late-night talk show, citing its financial losses.
David Ellison in October made a controversial hire of the Free Press founder Bari Weiss to run CBS News — which delighted the president.
“Larry Ellison is great, and his son, David, is great,” Trump told reporters in mid-October. “They’re big supporters of mine.”
After Trump’s reported intervention, Paramount agreed in late November to distribute Brett Ratner’s “Rush Hour 4,” a project that had been shelved amid sexual assault allegations against the director highlighted in a Los Angeles Times report. Ratner has disputed all the allegations against him.
“They were in the pole position with the Trump administration, but then that [position] started to be not as appealing to people,” Hardart said.
Last month, there was a meeting at the White House to discuss Paramount’s bid and the threat of Netflix, sources said. That same week, David Ellison was among the guests at a White House dinner hosted by Trump for Mohammed bin Salman, the crown prince of Saudi Arabia.
A report in the Guardian also raised alarm bells among some foreign regulators, one knowledgeable person said. The newspaper reported, citing anonymous sources, that White House officials had informally discussed with Larry Ellison several female CNN anchors whom Trump disliked and wanted fired should Paramount succeed in buying Warner.
People close to Paramount contend that Zaslav and his mentor, John Malone, who serves as a Warner board member emeritus, were biased against Paramount and that Zaslav is angling to retain his mogul status.
Paramount ultimately submitted six offers to Warner, including a final $30 a share offer, but none were as strong as Netflix’s proposal, said two people involved with the auction.
Paramount executives knew last Monday that they had been bested, according to people close to the company. Two days later, they lobbed a missive at Warner: “WBD appears to have abandoned the semblance and reality of a fair transaction process,” Paramount’s lawyers wrote.
Netflix said Friday its deal won’t close for a year to 18 months, the anticipated time it will take to win regulatory approval. That’s far from guaranteed, however, given possible antitrust concerns over Netflix’s market dominance.
Now they’re girding for fight with Warner Bros. Discovery over its handling of the auction.
Until recently, Larry Ellison was perhaps best known in Hollywood circles for playing himself in an “Iron Man 2” cameo during which Tony Stark refers to him as the “Oracle of Oracle” — and as the father who quietly bankrolled the film business careers of his children, David and Megan.
Those who know Larry Ellison say he should not be counted out.
At 81, a determined and resolute Ellison has shown no signs of slowing down. Although he stepped down as Oracle’s CEO in 2014, he remains its executive chairman and chief technology officer — and continues to be deeply involved in the company and its growing tentacles.
Larry Ellison, third from right at the White House with President Donald Trump, SoftBank CEO Masayoshi Son and OpenAI CEO Sam Altman, appears to announce Stargate, a new AI infrastructure investment.
(Andrew Harnik / Getty Images)
“He keeps reinventing the company. Right when you think that they can’t figure it out, they figure it out and they’re pretty resilient,” said Brent Thill, a tech analyst at Jefferies.
The son of a 19-year-old unwed mother, Ellison grew up in a modest walk-up apartment on Chicago’s South Side, where he was raised by her aunt and uncle.
As he told Fox Business, “I had all the disadvantages necessary for success.”
Larry Ellison at the Oracle OpenWorld 2018 conference in San Francisco.
(Bloomberg via Getty Images)
Smart and headstrong, Ellison attended the University of Chicago, but dropped out and drove to California in a used Thunderbird. He got a job as a bank computer programmer, the first of several computer jobs at various companies.
In the early 1970s, Ellison began working on early databases for a company called Ampex. As the story goes, it became the precursor to Oracle’s systems.
By 1977, Ellison co-founded Oracle with $1,200 and ideas deeply inspired by an IBM research paper. The start-up transformed how companies and organizations stored, managed and retrieved huge volumes of data. The software company quickly became an influential tech giant. Oracle’s first contract was with the CIA.
In 1986, Oracle went public and seven years later Ellison landed for the first time on Forbes billionaire’s list, with a net worth of $1.6 billion.
Even among the ego-driven billionaire eccentrics of Silicon Valley, Ellison stood out. “The Difference Between God and Larry Ellison” is the title of a 1997 biography — one of at least 10 tomes examining the life of Larry.
Unlike many of his tech titan peers, who preferred quiet pursuits and carefully crafted public personas, Ellison reveled in his flamboyant escapades and the attention it attracted.
Ellison has flown fighter jets for fun, won the America’s Cup, twice (in 2010 and 2013), collected super yachts, mansions and samurai swords.
As both Oracle’s and Ellison’s fortunes swelled, he earned a reputation for ruthlessness. For years, his archnemesis was Microsoft founder Bill Gates. During the rival’s antitrust trial in 2000, Ellison not only admitted to hiring private investigators to go through Microsoft’s garbage but he also defended his actions, calling the move his “civic duty.”
Mike Wilson, one of Ellison’s biographers, called him “the Charles Foster Kane of the technological age.”
At Oracle, Ellison pushed to expand into cloud computing, healthcare and, more recently, artificial intelligence, forging close partnerships with AI chipmaking behemoth Nvidia, Meta and xAI.
Hollywood, however, was the domain of Ellison’s children, David and Megan, whom he had with his third wife, Barbara Boothe. They divorced shortly after Megan was born.
Larry Ellison and his children, the producers Megan Ellison and David Ellison.
(Lester Cohen / WireImage)
The Ellison scions grew up with their mother on a horse farm in Woodside, in the San Francisco Bay Area, and spent time with their father during school breaks, sailing around the world on one of his super yachts.
Early on, the tech entrepreneur set up trusts for his children with large tranches of stock in Oracle and later NetSuite, an enterprise software company he helped finance, that went public in 2007. Over time, the trusts, in addition to their independent holdings, have made David and Megan phenomenally wealthy.
With Ellison’s deep pockets, both pursued filmmaking. Megan launched Annapurna, an indie production company behind such acclaimed movies as “Zero Dark Thirty” and “Her.” David, after a brief, unsuccessful stint as an actor and producer of the 2006 flop “Flyboys,” established Skydance Media, bankrolling a slew of massive box office and television hits such as “Top Gun: Maverick,” “Star Trek” and “Grace and Frankie,” later broadening into animation, sports and gaming.
“David made money, his sister made the art,” said Stephen Galloway, dean of Chapman University’s Dodge College of Film and Media Arts.
And Larry Ellison often stepped in.
In 2018, he shepherded a major reorganization of Annapurna after the company stumbled into hundreds of millions in losses amid several box office misfires.
It was Ellison who put up the bulk of his son’s $8-billion bid to buy Paramount, the iconic studio, as well as CBS, MTV and other properties — and he holds nearly 78% of the newly formed company’s stock, making him its largest shareholder.
The Ellison family announced plans to remake the fabled Paramount studio through major investments, leveraging technology and building on popular franchises including “Top Gun,” “Star Trek” and “Yellowstone.”
And they aren’t ready to walk away from Warner Bros.
If history has proven anything, Ellison is always up for a fight.
Times staff writer Queenie Wong contributed to this report.
Business
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
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.”
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.”
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.”
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.
“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.”
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.”
Business
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.
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.
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.
Business
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.
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.”
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.
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.
The Associated Press contributed to this report.
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