he Trump administration has reinstated Chevron Corp.’s license to pump oil in Venezuela, a significant policy reversal that coincides with a broader diplomatic development between Washington and Caracas, Bloomberg reported, citing sources.
The decision follows a deal that saw the release of 10 Americans held in Venezuela and the return of 250 Venezuelans previously detained in El Salvador to their home country.
According to a person familiar with the matter, who requested anonymity, the arrangement includes a key stipulation: no royalties or tax payments from Chevron’s operations will benefit the government of President Nicolás Maduro.
While full details of the US decision have not yet been disclosed, the move signals a more transactional approach to diplomacy and energy policy under the Trump administration.
The White House has not issued an official comment on the matter.
Chevron spokesman Bill Turenne stated, “Chevron conducts its business globally in compliance with laws and regulations applicable to its business, as well as the sanctions frameworks provided for by the US government, including in Venezuela.”
Market response and energy implications
The announcement had an immediate, albeit modest, effect on global oil markets.
Brent crude futures, which had been trading higher earlier in the day, pared gains and settled just 0.1% higher at $68.57 per barrel as of 1:05 p.m.
New York time. The potential for additional supply entering the market through renewed Chevron operations in Venezuela contributed to concerns about oversupply.
Chevron had previously been ordered to wind down its operations in Venezuela in May as part of broader sanctions imposed by the Trump administration to pressure Maduro.
The license reinstatement will allow the Houston-based energy giant to resume production at its sites, which could inject much-needed U.S. dollars into Venezuela’s struggling economy.
At the time the license was revoked, national security officials such as Secretary of State Marco Rubio praised the tough stance.
However, others in the administration, including special envoy Ric Grenell, have advocated for a more pragmatic relationship with the Maduro regime.
Chevron’s continued presence in the country had become a focal point in US-Venezuelan negotiations, with supporters arguing that without the US firm, Venezuelan crude was flowing to countries like China.
Chevron’s role in Venezuela’s oil sector
Chevron has long served as a key US presence in Venezuela’s oil sector, operating joint ventures with state-run Petroleos de Venezuela SA.
Before the license was suspended, the company’s projects produced over 240,000 barrels of oil per day—roughly a quarter of Venezuela’s total output.
This production helped the country exceed the 1 million barrels per day threshold.
In 2022, the Biden administration had granted Chevron a more limited license that allowed oil production and exports but prohibited expansion.
Now, the Trump administration’s latest move could position Chevron to play a more active role once again.
Venezuelan crude remains important to U.S. refineries, particularly those along the Gulf Coast. At the end of 2024, the US was importing approximately 250,000 barrels per day of Venezuelan oil.
Valero Energy Corp. was the top consumer, followed by Chevron, which processes the oil at its own facilities and supplies other refineries as well.
As diplomatic dynamics shift and energy priorities evolve, Chevron’s re-entry into Venezuela may mark a new chapter in both countries’ complex economic and geopolitical relationship.
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