U.S. President Donald Trump announced that he was revoking permission for American oil giant Chevron to operate in Venezuela. This decision cuts off a crucial source of revenue for Venezuela, a country already struggling with a weak economy.
Trump made the announcement on his Truth Social platform, blaming Venezuela’s leader for not keeping his promises. One of these promises included taking back Venezuelan citizens who had illegally entered the U.S. He also pointed out that the Venezuelan government had not met fair election standards, leading to his decision to end Chevron’s operations there.
This decision reverses a policy put in place by the previous U.S. government, which had allowed Chevron to operate in Venezuela under strict conditions. The goal back then was to secure the release of detained Americans and push for fair elections in Venezuela. However, after accusations of election fraud and a lack of cooperation from the Venezuelan government, Trump decided to take action.
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Chevron’s Role in Venezuela’s Oil Industry
Chevron was the only American oil company still active in Venezuela, helping the country revive its declining oil industry. The company was producing around 240,000 barrels of oil per day—about one-fourth of Venezuela’s total oil output. With Chevron forced to leave, Venezuela now faces an even deeper economic crisis.
Chevron had stopped operations in Venezuela back in 2018 when Trump first imposed sanctions. However, after a temporary deal was struck in 2022, the company was allowed to return and resume oil production. This helped bring some stability to the Venezuelan oil sector, which had been in steep decline for years. Now, with Trump’s latest move, the country’s oil production is expected to drop again.
A spokesperson for Chevron said that the company was reviewing the situation and would comply with all U.S. regulations. The company did not confirm when it would officially halt operations but noted that it was considering its next steps carefully.
Venezuelan Government Calls the Decision Harmful
Venezuela’s Vice President strongly criticized Trump’s decision, calling it both damaging and senseless. She warned that this move could make the situation worse, not just for Venezuela but also for the United States.
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She pointed out that when the U.S. first imposed strict sanctions on Venezuela in 2017, it triggered a wave of migration. Millions of Venezuelans fled the country due to economic hardship and political instability. She suggested that this new decision could once again force more Venezuelans to leave in search of better opportunities.
Economic Impact and Future Uncertainty
Many economic experts agree with this concern. They warn that shutting down Chevron’s operations in Venezuela could have serious effects on the country’s economy. Without Chevron’s oil production, Venezuela could lose up to $200 million per month. This loss could push the country closer to recession, increase inflation, and worsen the already unstable exchange rate.
Economic analysts believe that Venezuela has a few months to prepare before Chevron fully withdraws. Some experts suggest that this period could be used for possible negotiations between the Venezuelan government and the Trump administration. However, with tensions running high, the chances of such discussions remain unclear.
For now, the decision marks a major economic setback for Venezuela. The country, already facing high inflation and financial struggles, will now have to deal with the loss of one of its biggest oil investors. The full impact of this move will likely become clearer in the coming months as Venezuela faces yet another economic challenge.
