Washington, D.C. – President Donald Trump has announced the revocation of Chevron’s license to operate in Venezuela, a move set to take effect on March 1, 2025. This decision comes as part of his administration’s renewed hardline stance against Nicolás Maduro’s government, citing electoral failures and insufficient cooperation in migrant repatriation.
Chevron’s Role in Venezuela’s Oil Industry
Chevron, the last remaining major U.S. oil company operating in Venezuela, has been a key player in the country’s fragile economic recovery. Under a license granted by the Biden administration, the company was permitted to produce and export Venezuelan crude oil, despite longstanding U.S. sanctions aimed at isolating Maduro’s regime.
Currently, Chevron exports 294,000 barrels of oil per day, playing a vital role in sustaining Venezuela’s total daily output of just over 1 million barrels. Since 2023, its operations have contributed over $4 billion in taxes to the Venezuelan government, helping stabilize an economy that has been crippled by years of hyperinflation and international sanctions.
Trump’s Justification for the Revocation
Trump justified the move by stating that Maduro failed to implement electoral reforms and had not repatriated Venezuelan migrants from the U.S. at a satisfactory pace.
“The Maduro regime has not honored its commitments. There will be no more deals until real changes are made,” Trump said in a statement.
The decision is expected to further strain relations between the U.S. and Venezuela, potentially leading to an energy supply disruption. With Chevron’s six-month exit window, experts warn that Venezuela may struggle to maintain its current oil production levels, putting additional pressure on the already volatile global oil market.
What’s Next?
With the Chevron deadline approaching, the Venezuelan government may seek new partnerships with China, Russia, or Iran to replace lost U.S. investment. Meanwhile, U.S. refiners that rely on Venezuelan crude could face price hikes and supply constraints.
Sources: Bloomberg, Politico, StraitTimes, Reuters, FinancialPost.
