U.S. to grant Chevron license to preserve oil assets in Venezuela

illuminem summarises for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:

🗞️ Driving the news: The U.S. is set to grant Chevron a limited license to preserve its oil-producing infrastructure in Venezuela, allowing the company to maintain assets but not to import oil
• The move follows the expiration of a Biden-era waiver and reflects the Trump administration’s stricter stance on Venezuela, aimed at isolating the Maduro regime
• The license is designed to prevent asset seizure and maintain Chevron’s readiness should U.S.-Venezuela relations improve

🔭 The context: Chevron (see sustainability performance) remained in Venezuela after others, like ExxonMobil, exited amid nationalizations and sanctions
• Under President Biden, Chevron had resumed limited operations in 2022 to support democratic negotiations in Caracas
• However, political pressure from Florida lawmakers aligned with Secretary of State Marco Rubio has led to a rollback
• The current license represents a strategic compromise — preserving long-term commercial interests while tightening sanctions enforcement

🌍 Why it matters for the planet: Venezuela holds some of the world’s largest oil reserves, making U.S. corporate and political decisions there geopolitically and environmentally significant
• Restricting Chevron’s operations maintains pressure on the Maduro government but delays potential investments in cleaner technologies or operational upgrades
• It also raises concerns over increasing Chinese influence in the region, which could further entrench fossil fuel exploitation with fewer environmental safeguards

⏭️ What's next: Chevron will continue to hold its four joint ventures with Petróleos de Venezuela S.A. in suspension mode, producing no oil under the new license
• The status quo may persist unless diplomatic relations thaw or domestic U.S. politics shift, especially in an election year
• The U.S. administration will monitor Maduro’s actions and broader geopolitical developments, particularly in light of rising tensions over Venezuela’s territorial claims on Guyana’s oil-rich regions

💬 One quote: “Win China Lose USA,” — Harry Sargeant IV, president of Global Oil Terminals, summarizing U.S. oil industry concerns about geopolitical retreat

📈 One stat: Chevron currently accounts for about 220,000 barrels per day of Venezuela’s crude production — roughly 25% of the country’s output

See on illuminem's Data Hub™ the sustainability performance of Chevron and its peers ExxonMobil, Shell, and BP

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