U.S. President Donald Trump announced on Wednesday that he is reversing a license previously granted to Chevron by former President Joe Biden, which allowed the oil company to operate in Venezuela. Trump criticized Venezuelan President Nicolas Maduro for failing to implement electoral reforms and for the lack of a plan to facilitate the return of migrants.
Trump made the revelation in a post on Truth Social, stating that he would be “reversing the concessions” outlined in the “oil transaction agreement, dated November 26, 2022.” While he did not explicitly mention Chevron by name, it was indeed the only company that received a license from the Biden administration on that date to operate in Venezuela’s oil sector.
Venezuelan Vice President Delcy Rodriguez responded to Trump by condemning the U.S. government’s decision as “damaging” and criticized it for leading to increased migration out of Venezuela. She took to Telegram to voice her concerns, highlighting how such decisions exacerbate the humanitarian crisis facing the country.
The implications of revoking the license are significant; Chevron exports approximately 240,000 barrels of crude oil daily from its Venezuelan operations, accounting for over a quarter of the nation’s oil production. Should Trump proceed with this reversal, Chevron would no longer be able to export Venezuelan crude, thereby impacting U.S. refineries due to ongoing sanctions against Venezuela’s state oil company, PDVSA.
Since resuming office in January, Trump has publicly stated that the U.S. is not dependent on Venezuelan oil and has hinted at the potential of revoking Chevron’s operational license.
In the context of Trump’s complex political and legal landscape, this decision may serve as a strategic maneuver to assert stronger foreign policy positions as he braces for potential electoral challenges ahead. While critics may view the move as punitive towards Venezuela, it also reflects ongoing tensions surrounding energy policy and international relations.
This development underscores the importance of maintaining dialogue around U.S.-Venezuela relations amidst ongoing tensions and humanitarian concerns. As the situation unfolds, observers hope for a resolution that can address both the humanitarian needs of Venezuelans and U.S. energy interests.
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