President Donald J. Trump announced on Wednesday that he was terminating a license that allowed Chevron to operate in Venezuela and export oil to the United States, reversing a Biden-era policy and cutting off a critical economic lifeline for the government of President Nicolás Maduro. The decision, effective March 1, comes amid frustration over Mr. Maduro’s slow progress on electoral reforms and the repatriation of Venezuelan migrants.
Mr. Trump disclosed the move in a post on Truth Social, his social media platform, accusing Mr. Maduro of failing to honor commitments tied to diplomatic negotiations. “No more oil money flowing from America while he drags his feet on democracy and floods our borders,” Mr. Trump wrote. The announcement signals a sharp departure from recent efforts to ease tensions with Venezuela, including a visit this month by Richard Grenell, Mr. Trump’s special envoy, to Caracas.
The license, granted in November 2022 under President Biden, had permitted Chevron to resume limited operations in Venezuela despite broad U.S. sanctions aimed at pressuring Mr. Maduro’s authoritarian regime. It was a rare exception that enabled the export of Venezuelan crude to American refineries, providing hundreds of millions of dollars in revenue to a nation battered by economic collapse. Chevron’s role had also been seen as a stabilizing factor in global oil markets.
The revocation is expected to deepen Venezuela’s financial woes, where oil accounts for nearly all export earnings. Analysts warn that the move could worsen shortages of food, medicine, and fuel, potentially accelerating migration to the United States—a central issue in Mr. Trump’s 2024 campaign. In the U.S., the impact on energy markets is likely to be muted, given increased domestic production and alternative suppliers.
The decision follows weeks of mixed signals from the Trump administration. Mr. Grenell’s trip had raised hopes of improved relations, with talks focusing on migrant repatriation and political concessions. But Mr. Trump’s abrupt shift suggests a return to a tougher stance, leveraging economic tools to press Mr. Maduro.
Chevron, which had sought to preserve its operations in Venezuela—home to vast oil reserves—declined to comment on Thursday. As the March 1 deadline nears, attention now turns to Mr. Maduro’s next move in a standoff that has defined U.S.-Venezuela relations for over a decade. Pic credit AP/PTI.