On Wednesday, President Trump announced on his social media platform Truth Social that the U.S. government would terminate the permit for energy giant Chevron to extract and export Venezuelan oil. This move is expected to severely impact Venezuela’s economic lifeline.
President Trump condemned the Venezuelan President Maduro’s government for last year’s presidential election, stating that it did not meet the international standards of free, fair, and transparent elections and failed to promptly repatriate Venezuelan immigrants expelled by the U.S.
He mentioned that he would revoke the concessions given to Maduro by the Biden administration in oil trading.
Although Trump’s statement did not specifically mention the California-based Chevron company or the General License for export, it was noted by the Associated Press that this is the only license related to Venezuela, and its issuance and renewal dates align with what Trump mentioned.
In 2022, the Biden administration partially eased sanctions on Venezuelan oil, allowing Chevron to resume oil extraction in Venezuela and export it to the U.S.
The purpose of issuing this license was to urge Venezuela to release detained Americans and to demand that Maduro commit to cooperating with the political opposition in promoting democratic elections.
However, the July 2024 election was deemed unfair and unfree. Despite reliable evidence indicating that his opponent received more votes, Maduro began his third six-year presidential term last month.
Both the Biden and Trump administrations do not recognize Maduro as the legitimate president of Venezuela. They assert that retired diplomat Edmundo González was the true winner of the election on July 28, 2024.
The opposition estimates that Maduro’s government gained around $4 billion through this license, which was set to be renewed this Saturday.
Chevron spokesperson Bill Turenne stated in a release, “We have taken notice of today’s announcement and are evaluating its impact. Chevron’s operations in Venezuela fully comply with all laws and regulations, including the U.S. government’s sanctions framework.”
Venezuela holds the world’s largest known oil reserves and was once a dominant economic power in Latin America. However, corruption, mismanagement, and U.S. economic sanctions have led to a gradual decline in the country’s oil production.
In 2013, Venezuela’s economy collapsed, and Maduro officially assumed the presidency. Since then, over 7.7 million people have fled their homes in Venezuela.
Most immigrants chose to settle in Latin America and the Caribbean, but following the pandemic, more Venezuelans are turning their eyes towards the U.S.
Venezuelan Vice President Delcy Rodríguez described Trump’s decision on Wednesday as “harmful and incomprehensible.”
Rodríguez warned that Trump’s decision could further fuel the exodus of Venezuelan immigrants.
On Wednesday, Venezuelan opposition leader Maria Corina Machado accused Maduro of using the funds from the oil permit for “repression, persecution, and corruption” during a podcast interview with Donald Trump Jr.
“This is a significant move and sends a clear, firm message,” she said.