- Trump revoked Chevron’s license in Venezuela, citing Caracas’ failure to meet a migrant repatriation deal.
- The decision could significantly impact Venezuela’s oil exports and foreign investment in its energy sector.
- Chevron may reduce its presence in the country, weakening Venezuela’s struggling economy.
Donald Trump revoked Chevron’s key license to operate in Venezuela after accusing Caracas of failing to uphold a migrant repatriation agreement. This decision may heavily impact Venezuela’s oil industry and further strain U.S.-Venezuela relations.
The White House confirmed Trump’s decision to cancel the license, initially granted by President Joe Biden as part of efforts to ease sanctions on Venezuela’s energy sector. Trump directly blamed Venezuela for not fulfilling its commitment to accept migrants expelled from the U.S.
Chevron, one of Venezuela’s few remaining foreign oil companies, relied on the license granted in November 2022 to continue limited operations despite U.S. sanctions. Losing this access cuts off a crucial revenue source for Nicolás Maduro’s government, which depends heavily on oil exports. The country’s economy, already struggling under sanctions and poor management, now faces more significant challenges.
Venezuela’s oil production, already in decline due to structural issues and U.S. restrictions, risks falling further as Chevron reduces operations. This decision also discourages potential foreign investors from entering Venezuela’s beleaguered oil sector.
Venezuelan Vice President Delcy Rodríguez criticised Trump’s decision, calling it “harmful and inexplicable.” She warned of negative consequences for Venezuelan and American economic interests in the region. In contrast, opposition leader María Corina Machado praised the move as a firm stance against Maduro’s regime. She claimed oil revenues from Chevron’s operations financed repression and corruption in Venezuela.
Chevron reviewed the decision’s implications and stressed its compliance with U.S. laws and sanctions. However, the company now faces scaling down its presence in Venezuela, a country with vast oil reserves but crippled by mismanagement and years of sanctions.
Trump’s action aligns with Washington’s long-standing refusal to recognise Maduro as Venezuela’s legitimate president. By maintaining heavy sanctions, the U.S. continues to pressure the Venezuelan government. Trump’s decision adds another layer of economic difficulty for Caracas, as it struggles to manage an already collapsing economy.
Venezuela’s declining oil production hampers its ability to export crude, diminishing its financial capacity to fund public services and meet international obligations. Chevron’s exit could deepen these struggles, removing a vital link between Venezuela and the global oil market.
Trump’s decision could also impact U.S. interests in the region. Chevron, a long-standing player in Venezuela, helped maintain ties between the two countries’ energy sectors. Now, with Chevron potentially pulling back, this connection may disappear.
The revocation of Chevron’s license marks a critical turning point in U.S.-Venezuela relations, with lasting implications for the region’s oil trade.