President Donald Trump announced Wednesday that his administration will revoke the permit allowing Chevron Corp to extract and export Venezuelan oil, shutting down a financial lifeline worth an estimated $4 billion for Nicolás Maduro’s government.
In a post on Truth Social, Trump blamed Maduro for failing to uphold democratic standards in the July 2024 presidential election. Also, for delaying the return of deported Venezuelan migrants.
“We are reversing the concessions that Crooked Joe Biden gave to Nicolás Maduro,” Trump wrote, referring to the oil agreement.
Although Trump did not explicitly name Chevron, the timeline he provided coincides with the expiration of the general license that allowed the company to bypass U.S. sanctions. The Biden administration issued the permit in 2022 to encourage democratic reforms in Venezuela. But after an election widely denounced as unfair, Maduro secured a third six-year term. This, despite credible evidence that his opponent had received more votes.
Impact on Oil Markets and Venezuela’s Economy
The license, set to expire Saturday, facilitated roughly 25% of Venezuela oil production. Chevron, which has operated in Venezuela for over a century through joint ventures with state-owned PDVSA, responded cautiously.
“Chevron conducts its business in Venezuela in compliance with all laws and regulations,” spokesman Bill Turenne said.
Venezuela holds the world’s largest proven oil reserves, but since 2013, when Maduro took office, more than 7.7 million Venezuelans have fled the country due to economic collapse.
Venezuelan Vice President Delcy Rodríguez criticized Trump’s decision as “harmful and inexplicable,” warning that previous U.S. sanctions worsened migration between 2017 and 2021. The announcement disrupts recent diplomatic engagements between Washington and Caracas, including a February visit by a Trump envoy that led to Venezuela accepting deported migrants from the U.S.
Meanwhile, opposition leader María Corina Machado, in an interview with Donald Trump Jr., accused Maduro’s government of using oil profits “for repression, persecution, and corruption.” She praised Trump’s decision, stating, “This sends a clear, firm message—Maduro is in serious trouble.”
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