Trump Revokes Chevron’s Oil Permit Amid Venezuelan Political Strife

CARACAS, Venezuela — President Donald Trump announced on Wednesday that the United States will terminate a permit allowing Chevron Corp. to pump and export Venezuelan oil. The decision comes in the wake of allegations that Nicolás Maduro‘s government failed to meet democratic standards in last year’s presidential election.

Trump, in a post on Truth Social, stated, “We are hereby reversing the concessions that Crooked Joe Biden gave to Nicolás Maduro on the oil transaction agreement.” He accused Maduro’s government of inadequate efforts in facilitating the return of immigrants facing deportation.

The permit, formally known as a general license, had exempted Chevron from U.S. sanctions and permitted the company to export Venezuelan oil to the U.S. It was initially authorized by the Biden administration in 2022 when Maduro agreed to work toward a democratic election. Nonetheless, the presidential election held in July 2024 was widely criticized as unfair, resulting in Maduro being sworn in for a third term, despite evidence suggesting his opponent garnered more votes.

The opposition in Venezuela has estimated that the government received approximately $4 billion from the permit, which had become critical for the beleaguered economy, accounting for about a quarter of the nation’s oil production.

“We are aware of today’s announcement and are considering its implications,” said Chevron spokesman Bill Turenne, noting that the company operates in compliance with all U.S. laws and regulations, including sanctions.

Venezuela, which holds the world’s largest proven oil reserves, has struggled economically due to corruption, mismanagement, and international sanctions. The recent developments come amid an ongoing crisis that has driven more than 7.7 million Venezuelans to flee the country since 2013, many seeking refuge in Latin America and the United States.

Vice President Delcy Rodriguez described Trump’s announcement as “harmful and inexplicable,” indicating that it would negatively impact Venezuelan relations with Washington. Rodriguez claimed that similar decisions led to increased migration between 2017 and 2021, which had significant humanitarian consequences.

The U.S. does not recognize Maduro as the legitimate president of Venezuela. Following Trump’s announcement, opposition leader María Corina Machado spoke out, suggesting that the revocation of the permit sends a decisive message about Maduro’s precarious position. “This is a huge step, and it sends a clear, firm message that Maduro is in huge trouble,” Machado stated in a podcast interview.

Chevron has been operating in Venezuela since the 1920s through joint ventures with the state-owned Petroleos de Venezuela S.A., commonly known as PDVSA. Despite the setbacks from U.S. sanctions in recent years, Chevron’s production levels had seen a resurgence after obtaining the oil export license in November 2022.

The immediate future of oil production in Venezuela now remains uncertain as the country navigates the economic ramifications of the license termination.