Trump Revokes Chevron’s License to Operate in Venezuela, Citing Electoral Failures

Former U.S. President Donald Trump announced on Wednesday that he is reversing the oil transaction agreement granted to Chevron by the Biden administration in November 2022, citing Venezuela’s failure to meet electoral conditions and commitments on migrant returns. The decision effectively ends Chevron’s ability to export Venezuelan crude, cutting off a major revenue source for President Nicolás Maduro’s government, which had benefited from billions in oil-related taxes and royalties. U.S. Secretary of State Marco Rubio supported the move, vowing to revoke all Biden-era oil and gas licenses that “bankrolled the illegitimate Maduro regime.”

The revocation could significantly impact Venezuela’s oil industry, as Chevron was exporting about 240,000 barrels per day—over a quarter of the country’s output. Without the license, U.S. refineries will be unable to purchase Venezuelan crude due to sanctions, potentially leading to disruptions in global supply chains. The White House has not issued a statement in response, while Venezuelan Vice President Delcy Rodríguez criticized the decision, calling it a damaging and unjustified action that could worsen economic conditions and migration out of the country.

Trump’s decision follows reports that Maduro failed to meet agreements related to the repatriation of Venezuelan migrants and electoral transparency. The U.S. and its allies had disputed Venezuela’s July 2024 election results, claiming the opposition had won by a landslide. Opposition leader María Corina Machado welcomed Trump’s move, calling it a step toward democracy in Venezuela. It remains unclear how the revocation will affect Chevron’s ongoing crude shipments to U.S. ports or the company’s outstanding debt recovery from Venezuela.

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