KEY POINTS
- The U.S. ordered Chevron to stop oil exports from Venezuela.
- The decision threatens Venezuela’s oil production and economy.
- Analysts predict market volatility as the April 3 deadline nears.
The Trump administration has ordered Chevron to stop exporting oil from Venezuela, revoking a license that had allowed the company to operate in the country since 2022.
The decision comes as Washington accuses President Nicolás Maduro of failing to make progress on electoral reforms and migrant returns.
The new policy, announced Tuesday by the U.S. Treasury Department, requires Chevron to wind down its Venezuelan operations by April 3.
This move supersedes a 2022 license that had allowed the company to expand operations and resume oil exports to the United States.
Maduro’s government has strongly opposed the decision, calling it a damaging and inexplicable move. Venezuelan officials argue that sanctions have long been part of an “economic war” designed to cripple the country’s economy.
Chevron’s role in Venezuela’s oil production
Chevron’s partnership with Venezuela’s state-owned oil company PDVSA plays a critical role in the country’s energy sector.
The company’s joint ventures account for about 25 percent of Venezuela’s total oil output, making it one of the largest foreign operators in the country.
In January 2025, Chevron exported nearly 300,000 barrels per day of Venezuelan oil to the United States, providing a steady supply of heavy crude to U.S. refineries.
Companies such as Valero Energy, PBF Energy, Phillips 66, and ExxonMobil have depended on this supply for years.
The loss of U.S. exports is expected to hit Venezuela’s economy hard, reducing the amount of U.S. dollars circulating in its exchange markets.
According to Reuters, analysts warn that this could weaken the Venezuelan bolívar and drive up inflation.
Uncertain future for Venezuela’s oil industry
The U.S. government’s decision raises questions about the future of foreign oil companies operating in Venezuela.
The State and Treasury Departments are reportedly reviewing other foreign companies’ licenses, but no further details have been released.
In the past, similar restrictions have disrupted Venezuela’s oil production, leading to severe output reductions and billions in unpaid revenue.
With Chevron’s exit, analysts expect further instability in the country’s oil sector.
For the Maduro administration, this decision represents a major economic challenge. Venezuela has relied on Chevron’s tax payments and royalties to stabilize its economy.
Without that revenue, the government may struggle to maintain recent economic gains.
As the deadline for Chevron’s exit approaches, industry experts predict more volatility in global oil markets, especially in the U.S., which has relied on Venezuelan crude for refining operations.
