President Trump has canceled a sanction waiver for Chevron, limiting its operations in Venezuela amid concerns over electoral reform and migration. This move halts Chevron’s significant oil exports, which are vital for Venezuela’s economy, raising questions about the future of U.S.-Venezuela relations under the Trump administration.

President Donald Trump has recently revoked a sanction waiver for Chevron that previously allowed the oil giant to operate in Venezuela, significantly contributing to its oil production. The decision was made in response to the lack of electoral reforms and insufficient action regarding migration issues in the South American nation. Trump made his position clear in a statement on Truth Social, emphasizing the continuation of sanctions against Venezuelan President Nicolás Maduro’s regime.

In his statement, Trump remarked, “We are hereby reversing the concessions that Crooked Joe Biden gave to Nicolás Maduro,” referencing the oil transaction agreement established in November 2022. He criticized the Maduro administration for not fulfilling its promises, particularly the transportation of violent criminals back to Venezuela. Trump announced the end of the Biden-era concession agreement effective March 1st, which had facilitated Chevron’s operations in the country.

Thanks to this waiver, Chevron has been exporting approximately 240,000 barrels of Venezuelan crude oil daily, which represents about a quarter of the nation’s total oil production. This operation generates around $6 billion in revenue for Venezuela, underscoring Chevron’s importance to the country’s economy. Furthermore, Chevron had plans to increase production from its Petropiar facility by 50% this year, aiming for a total export of 143,000 barrels per day.

An analyst from the Atlantic Council noted that the previous administration’s maximum pressure policy had unintended consequences, such as driving migration and failing to achieve political change in Venezuela. The implications of Trump’s renewed stance on sanctions remain uncertain as his administration continues to take shape, particularly regarding Maduro’s potential cooperation and response.

Irina Slav, the author of this piece, has extensive experience in reporting on the oil and gas sector. Her insights reflect the complexities and dynamics of international energy policies and their direct impacts on economies such as Venezuela’s.

President Trump’s cancellation of Chevron’s sanction waiver emphasizes a shift in U.S. policy towards Venezuela, focusing on electoral reforms and migration issues. The decision impacts not only Chevron’s operations but also Venezuela’s economy, which relies significantly on oil exports. The future relationship between the U.S. and Venezuela remains uncertain as the Trump administration navigates these challenges while seeking to assert pressure on the Maduro regime.

Original Source: oilprice.com