WSJ reported on Wednesday that Trump is considering extending Chevron license to pump oil in Venezuela. Chief Executive Mike Wirth lobbied top administration officials including Secretary of State Marco Rubio and Treasury Secretary Scott Bessent.
EnergiesNet
CARACAS
EnergiesNet.com 03 20 2025
The Trump administration is reconsidering its stance on Chevron’s operations in Venezuela. After previously directing the company to wind down operations by early April, discussions are underway to potentially grant an extension to the oil giant’s license. Simultaneously, the administration is weighing financial penalties, such as tariffs, targeting countries that purchase Venezuelan oil. This move aims to stymie Chinese influence in the region, reinforce Chevron’s strategic position, and ensure a steady flow of oil into the U.S., according to a story by Brian Schwartz from the Wall Street Journal on Wednesday.
The shift in policy follows a meeting at the White House between President Trump, Chevron CEO Mike Wirth, and several cabinet members. Wirth has spearheaded a lobbying effort to convince the administration that Chevron’s departure could destabilize Venezuela’s economy and provide an opening for China. His argument plays into the broader U.S. geopolitical strategy to counter Beijing’s growing global influence.
The administration sees the potential penalties not only as leverage against countries buying Venezuelan oil but also as a way to pressure Venezuelan President Nicolás Maduro into negotiations. Among the goals is reaching a deal for Venezuela to accept deportees residing in the U.S., part of a larger immigration push that remains a high priority for President Trump.
However, the proposal has stirred debate within the president’s team and among key Republican lawmakers. Senator Marco Rubio and National Security Adviser Mike Waltz—both longtime critics of Maduro—have pushed back against any extension for Chevron, arguing that its operations directly benefit Maduro’s regime. Rubio and Waltz have historically championed maximum pressure tactics, insisting that U.S. interests are best served by cutting off all economic lifelines to Venezuela’s leadership.
Despite the opposition, Wirth has been meeting with cabinet officials and their teams to make his case. His conversations have included a request for at least a 60-day extension to allow Chevron more time to wind down operations, if necessary. Among those opposed to any extension are Rubio and Waltz, who see this as an opportunity to align the administration’s stance more closely with the Venezuelan community in Florida—a key political constituency for Trump.
The stakes are exceptionally high, as Chevron accounts for a significant portion of Venezuela’s oil production and exports, with much of the revenue used to repay the billions of dollars owed to the company. The oil is refined in the U.S. into various products, including asphalt, underscoring the economic importance of the arrangement. If Chevron pulls out, the ripple effects could be felt across markets and industries globally.
This policy review marks another twist in the administration’s Venezuela strategy. Just weeks ago, President Trump announced the termination of Chevron’s license, citing Maduro’s failure to meet electoral commitments and his slow response to accepting deportation flights. This decision followed pressure from Florida Republicans seeking tougher measures against Maduro’s regime. Yet, the sudden shift suggests the administration may be grappling with balancing its geopolitical aims, domestic politics, and economic considerations.
Chevron’s lobbying blitz and the administration’s evolving approach reveal the complexity of the situation. As decisions loom, the intertwined issues of energy, diplomacy, migration, and U.S. competition with China remain at the forefront of the debate.
Source: WSJ
Writing by Elio Ohep, EnergiesNet
EnergiesNet.com 03 20 2025
