Michael Burry’s big play off the U.S.-Venezuela situation, which the investor has held for years

Michael Burry’s quiet bet on Venezuelan oil is on the agenda again.

The investor, known for the movie “The Big Short”, said he was the owner Valero Energy Since 2020, he has found this position increasingly attractive as the United States moves toward a deeper role in reviving Venezuela’s oil industry.

“Realize that many refineries on the Gulf Coast were built specifically for Venezuelan heavy crude,” Burry wrote in Monday’s post. Blog post on Substack. “So they’ve been operating with sub-optimal feedstock for years. Over time, this will produce better margins on jet fuel, asphalt and diesel… I’ve owned Valero since 2020, and after this weekend I’m even more determined to keep it for even longer.”

His comments came after President Donald Trump called on US oil companies to invest in Venezuela following the ouster of President Nicolás Maduro. Venezuela, one of the founding members of OPEC, has the world’s largest proven crude oil reserves. The country’s oil is among the heaviest and most sulfur-laden in the world, and only a limited number of refineries are equipped to process it efficiently.

Valero stands out for its ability to process heavy crude, but Burry said smaller refineries are: PBF Energy And H.F. Sinclair Venezuela could benefit from this, even if its oil arrives slowly. A meaningful recovery in exports is likely to take years.

Many analysts on Wall Street also emphasize that Valero is the biggest beneficiary if the supply in Venezuela increases. Shares of the refinery rose nearly 10% on Monday.

The opportunity may go beyond refining. Burry said Venezuela’s oil infrastructure is deteriorating after decades of underinvestment, creating potential demand for U.S. oilfield service companies if large-scale rehabilitation begins.

Burry said he owned halliburtonand sees a possible upside for Schlumberger and Baker HughesThis could be leveraged to help rebuild pipelines and refineries.

“Venezuelan pipelines and refineries are old and in disrepair. This work will go to US contractors,” he said. “Chevron is already there. Exxon and others have been suing for decades, and if the United States starts literally running Venezuela as some have suggested, they could see justice relatively soon. I own Halliburton and could buy more shares or LEAP.”

LEAPs, or long-term stock prediction securities, are options with long expiration dates that can exceed one year.