Washington Tightens Its Grip on Venezuelan Oil
The Trump administration has moved decisively on Venezuelan oil, blocking several foreign majors while allowing Chevron to maintain operations. This action, aimed at increasing pressure on Nicolás Maduro’s government, highlights how U.S. sanctions control global oil access. The decision impacts European giants like Repsol, Eni, and Maurel & Prom, along with India’s Reliance Industries.
Why Chevron Gets a Pass
Interestingly, Chevron continues to operate in Venezuela. Washington granted the U.S. oil giant special approval to resume producing and exporting crude. For the administration, this creates a balance: exerting “maximum pressure” on Maduro while ensuring American refineries access much-needed oil. Officials argue this deal secures supply stability for U.S. markets at a time of rising global energy risks.
Geopolitical Calculations at Play
The strategy reveals Washington’s balancing act. On one hand, Trump maintains his tough stance on Venezuela’s regime, Iran’s nuclear program, and Russia’s ongoing war in Ukraine. On the other, he seeks to manage energy prices at home. Recently, the Treasury Department also imposed sweeping sanctions on Tehran—the harshest in seven years.
Foreign Majors Left in Limbo
For now, European companies remain sidelined. Repsol, Eni, and Maurel & Prom had long sought waivers that would allow them to receive crude as repayment for debts owed by Venezuela’s PDVSA. Under President Biden, they had private approvals, but Trump has allowed those to expire. Their silence speaks volumes about growing uncertainty in the energy sector.
The Chevron Deal and U.S. Interests
The Chevron license came with strings attached. In exchange, Venezuela agreed to release 10 American prisoners and accept 250 Venezuelan migrants detained abroad. This transactional approach underscores Trump’s strategy: combining pressure with selective deals that serve U.S. geopolitical and domestic interests. The arrangement is expected to boost U.S. refinery supplies by more than 200,000 barrels per day.
The Road Ahead for Venezuelan Oil
As Washington doubles down on sanctions, the future of Venezuela’s oil industry hangs in the balance. While Chevron enjoys exclusive access, non-U.S. companies must wait for clarity. This divide reflects not just energy policy but also the administration’s wider global strategy. Every decision, from sanctions to waivers, signals how the U.S. intends to shape both oil markets and geopolitical alliances.
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