“Big Short” Bury's low-key holdings returned to the spotlight and held firm long-term positions, and related individual stocks jumped more than 9%

The Zhitong Finance App learned that as America's role in the Venezuelan energy sector may deepen, Michael Berry, a well-known investor and one of the prototypes of the movie “The Big Short,” said that he has held shares in Valero Energy (VLO.US) since 2020, and in the context of the US promoting the revival of the Venezuelan oil industry, this position is becoming more and more attractive.

“It is important to be aware that many refineries along the Gulf Coast were originally tailored for heavy Venezuelan crude oil,” Burry wrote, “so they have been operating with suboptimal raw materials all these years. As soon as conditions improve, profit margins on aviation fuel, asphalt, and diesel will rise over time... I have owned Valero since 2020, and after this past weekend, I am even more determined to hold on to the long term.”

Bury's statement comes after Trump called on US oil companies to increase their investment in Venezuela. Earlier, Venezuelan President Nicolas Maduro was overthrown. As a founding member of OPEC (OPEC), Venezuela has the largest proven crude oil reserves in the world, but its crude oil is known for being “heavy and high in sulfur,” and only a few refineries in the world have efficient processing capacity.

In this context, Valero Energy is considered a direct beneficiary due to its strong heavy oil processing capabilities. At the same time, Burry pointed out that even if Venezuela's crude oil supply recovery process is slow, smaller refiners, such as PBF Energy (PBF.US) and HF Sinclair (DINO.US), are expected to benefit from it. He stressed that it is likely that it will still take several years for Venezuelan exports to achieve a substantial recovery.

Many Wall Street analysts also regard Valero as the “biggest winner” in the scenario where Venezuelan crude oil supply rebounds. Driven by related expectations, Valero's stock price surged more than 9% on Monday.

Burry believes that investment opportunities are not limited to the refining sector. Due to long-term underinvestment, Venezuela's oil infrastructure has seriously deteriorated. Once large-scale restoration is initiated, US oil service companies may face new demand.

He revealed that he already holds Halliburton (HAL.US) shares and is optimistic about potential opportunities in SLB.US (SLB.US) and Baker Hughes (BKR.US). These companies may participate in the reconstruction of pipelines and refining facilities.

“Venezuela's pipelines and refineries are in disrepair, and it is likely that these projects will eventually be completed by American contractors,” Burry said. Chevron (CVX.US) is already operating locally, and lawsuits by companies such as ExxonMobil (XOM.US) over historical assets have continued for decades. If the US actually starts to 'take over' Venezuela, as some say, these issues may usher in a turning point. I hold Halliburton and may continue to increase my positions.”