U.S. confirms Chevron’s License to operate in Venezuela expires May 27
Chevron’s Venezuelan operations face uncertainty as the U.S. confirms license expiration on May 27, signaling a pivotal moment for energy markets and geopolitics in the region.
The U.S. government has announced that Chevron's license to operate in Venezuela will be allowed to expire on May 27, 2025. The license was granted to Chevron by the Biden administration in November 2022 and allowed them to resume limited oil activities while negotiations with the Maduro regime were ongoing. This expiration coincides with a significant change in U.S. policy in the Venezuela oil sector.
Despite matter-of-factly mentioning Richard Grenell (the U.S. Special Envoy), and his offering to extend the license for an additional 60 days, Secretary of State Marco Rubio response was that the license would not be extended, and would expire as was planned. We have not received official comments from the U.S. State and Treasury Departments. This categorical response appears to indicate a sharpening of sanctions enforcement.
U.S.-Venezuela tensions rise as Chevron license expiry threatens Venezuela’s fragile oil recovery
The move has escalated tensions between Washington and Caracas. President Donald Trump publicly rebuked the Maduro regime for its failure to make elections reform and for returning migrants to Venezuela. He had also emphasized support for the Biden-era license revocation to add to the political strife.
The expiry of Chevron's license could diminish Venezuelan oil production even more, which already operates well below capacity due to mismanagement, lack of investment and American sanctions instituted in 2019. Chevron is one of the few foreign firms operating in Venezuela and has helped bring a small recovery to Venezuela's struggling petroleum industry.
Maduro condemns US sanctions as economic war amid complex Venezuela-US energy talks
The Maduro government has condemned U.S. sanctions as illegitimate while calling them an economic war intended to destroy the American economy. Still, Venezuelan officials said they would be willing to continue dialogues with the U.S. to look for compromises that are advantageous for both countries; therefore, the diplomatic situation remains complex.
Senator Marco Rubio reacts to the expiration of Chevron’s oil license in Venezuela, calling it a “pro-Maduro Biden oil license”. Photo: Marco Rubio X account
This development emphasizes the fragile geopolitical and economic relationship between the United States and Venezuela, especially around energy resources. With Chevron's license due to lapse, this marks a shift with large consequences for both the American oil company and for the Maduro regime's objectives to stabilize Venezuela's oil industry and economy.
