Trump Reviews Halting Venezuela’s Oil Trade
President Donald Trump, speaking to journalists on February 18, 2025, suggests the U.S. might block Venezuela’s oil exports through Chevron.
He responds, “Probably not,” when asked about allowing shipments, adding, “We’re studying that now.” This news stirs uncertainty for Venezuela’s crumbling oil sector and U.S. energy markets.
Venezuela boasts 300 billion barrels in reserves, yet pumps just 700,000 barrels daily, down from 3 million in the 1990s. Sanctions since 2017 cripple PDVSA, the state oil firm, slashing output and cash flow.
Chevron, granted a license in 2022, lifts 100,000 barrels daily, a lifeline Maduro’s regime leans on heavily. Trump’s first term saw fierce sanctions, and now he eyes a return to that pressure.
Chevron’s $1–2 billion yearly haul from Venezuela hangs in the balance. Meanwhile, PDVSA scrambles for light crude to mix with its heavy Orinoco Belt oil, hit by a stalled Iran swap deal from 2024.
Without diluents, exports—600,000 to 700,000 barrels daily—could tank, gutting Venezuela’s $10 billion annual oil revenue, 90% of its foreign cash. Chevron’s CEO, Mike Wirth, pushes back, lobbying Trump’s team this month to highlight risks to U.S. refineries.
Losing Venezuela’s 50,000–70,000 barrels daily could jolt Gulf Coast supply chains. Analysts see Trump weighing a hardline stance against Maduro, who clings to power amid poverty and chaos.
Some on X note talks with Venezuelan officials, though details stay murky. If Chevron exits, China or India might buy discounted crude, but profits would shrink.
The U.S. could tap Saudi Arabia or Canada to replace Venezuela’s heavy oil, softening the blow. Still, Chevron’s decades-long stake in Venezuela teeters as Trump mulls his next move. For Caracas, already battered, this could deepen an economic abyss.
This brewing decision ties energy, geopolitics, and business in a knot. Trump’s review, due soon, will shape markets and Maduro’s fate. Observers wait as the White House balances punishing a foe with keeping oil flowing. Venezuela’s oil saga, once a global powerhouse, now hinges on Washington’s word.
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