U.S. Cancels Chevron’s Venezuela Oil License

The U.S. has revoked Chevron’s license to export Venezuelan oil ordering a halt within 30 days after it moved 240000 barrels daily. This move slashes 20 percent of Venezuela’s oil exports deepening the socialist regime’s economic woes under renewed Trump sanctions. The decision reverses a Biden-era waiver as Washington ramps up pressure on dictator Nicolas Maduro’s grip on power.

Chevron had pumped crude since 2022 under a rare exemption easing decades of U.S. restrictions to stabilize global supply. The license let it handle a fifth of Venezuela’s output or about 14 percent of its own Latin American production per industry data. Trump’s team axed it to choke Maduro’s cash flow blaming him for illegal immigration and regional chaos spilling into America.

Venezuela’s oil sector already limps with output down 75 percent since 1998 due to mismanagement and past sanctions. Losing Chevron’s exports could cost Caracas 2 billion dollars yearly worsening shortages of food and medicine for its people. The U.S. aims to force Maduro out though critics say it may backfire by strengthening his anti-American rhetoric at home.

The revocation aligns with Trump’s pledge to get tough on hostile regimes doubling down on a maximum pressure campaign. Treasury officials gave Chevron 30 days to wind down a tight leash compared to prior 6-month grace periods. Maduro blasted it as imperialist theft vowing to redirect oil to allies like China and Russia instead.

Chevron expressed regret over the move citing 1000 U.S. jobs tied to its Venezuelan operations now at risk. The firm had navigated sanctions via a special license since 2019 but could not sway Trump’s new hardline stance. Energy markets braced for a supply dip with oil prices ticking up 3 percent after the news broke this week.

Maduro’s regime leans on oil for 95 percent of its export cash leaving it exposed as U.S. buyers vanish. Smaller firms may lack Chevron’s scale to fill the gap especially with sanctions scaring off investors. Analysts see Trump betting this blow speeds up a coup or collapse though Maduro has clung on through worse.

Neighboring nations like Colombia worry about more Venezuelan refugees fleeing hunger if oil funds dry up further. Humanitarian groups urged Trump to pair sanctions with aid to avoid punishing civilians for their leader’s sins. Biden’s softer tack had aimed to ease suffering but failed to budge Maduro earning scorn from hawks now in charge.

Trump’s gambit tests whether strangling Venezuela’s oil lifeline topples a dictator or just hardens his resolve. Chevron’s exit marks a sharp turn from détente with no clear endgame if Maduro digs in. For now the U.S. flexes its muscle leaving Caracas to scramble as a 30-day clock ticks down to zero.