In a significant policy shift, the Trump administration has announced plans to revoke Chevron Corp.’s oil license to operate in Venezuela, a move that could severely impact the nation’s fragile economic recovery. This decision is tied to a concession agreement from November 2022, which allowed Chevron to produce and sell oil in Venezuela despite existing sanctions against President Nicolás Maduro’s government. Under this license, Chevron was granted a six-month period to wind down its operations.
In a recent social media post, President Trump criticized the concessions made by the previous administration, asserting that Maduro has failed to meet democratic standards and has not expedited the return of migrants to Venezuela as promised. This decision is seen as a response to increasing tensions following Maduro's controversial reelection and subsequent crackdowns on political opposition.
The implications of this revocation are significant. Chevron, the last major U.S. oil company operating in Venezuela, has been pivotal in stabilizing the economy, contributing to over 200,000 barrels of oil production daily, which represents about 20% of the country's output. Venezuelan officials have condemned the decision, claiming it harms both the Venezuelan people and U.S. interests.
Experts suggest that if the revocation goes through, it could reduce Venezuela’s oil production by approximately 100,000 barrels daily, further crippling the economy. In contrast, other foreign oil companies may continue operations under different terms, raising questions about the overall impact on the region's energy market. The move could inadvertently lead to rising domestic energy costs in the U.S., countering Trump's efforts to lower fuel prices.