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President Donald Trump has confirmed that the United States is revoking a license allowing Chevron to produce and export oil from Venezuela.
Some shit you should know before you read: Back when former President Biden was in office, the United States allowed Chevron to operate in Venezuela under a special license issued in 2022. This license permitted Chevron to produce and export Venezuelan oil despite existing US sanctions, with the condition that the company would not expand its operations or invest additional capital. Biden’s administration granted this concession as part of a diplomatic strategy to encourage democratic reforms and free elections in Venezuela, hoping to incentivize Nicolás Maduro to negotiate with the political opposition. The initial sanctions on Venezuela were imposed due to allegations of widespread corruption, human rights violations, and election fraud under Maduro’s regime.
What’s going on now: In a post on Truth Social, President Trump said,”We are hereby reversing the concessions that Crooked Joe Biden gave to Nicolás Maduro, of Venezuela, on the oil transaction agreement, dated November 26, 2022, and also having to do with Electoral conditions within Venezuela, which have not been met by the Maduro regime. Additionally, the regime has not been transporting the violent criminals that they sent into our Country (the Good Ole’ U.S.A.) back to Venezuela at the rapid pace that they had agreed to. I am therefore ordering that the ineffective and unmet Biden “Concession Agreement” be terminated as of the March 1st option to renew. Thank you for your attention to this matter!”
The decision is expected to have significant repercussions for both Venezuela and Chevron. Venezuela’s economy, which relies heavily on oil exports, will face a setback in its recovery efforts. Chevron’s involvement boosted Venezuela’s production to over 1 million barrels per day and was the only major US oil company still operating in Venezuela. According to the company, they were producing more than 200,000 barrels a day from its joint ventures with state-owned PdVSA.
In a statement, a spokesman for Chevron said the company was “aware of today’s announcement and are considering its implications.” They added, “Chevron conducts its business in Venezuela in compliance with all laws and regulations, including the sanctions framework provided by US government.”
This all comes less than a month after the US brokered a prisoner release that freed six Americans who were declared ‘wrongfully detained’ by the State Department. The negotiations involved Trump’s special envoy, Richard Grenell, who traveled to Caracas and met with Maduro.
