The United States government will not renew Chevron’s license to operate in Venezuela, signaling a sharp shift in Washington’s posture toward President Nicolás Maduro’s regime. The decision, reported by the Financial Times, underscores the Trump administration’s renewed commitment to isolating the authoritarian government in Caracas, despite lobbying efforts from Chevron and conflicting signals from within the administration.
The announcement was made on Tuesday by State Department spokesperson Tammy Bruce, who declared that the Biden-era license, which had allowed Chevron to produce oil in Venezuela under certain restrictions, would expire as scheduled at 11:59 p.m. on May 27.
“This is the last hurrah here,” Bruce said. “We are going to continue to deny any funding of the Maduro regime that it uses to oppress the Venezuelan people.”
The move reflects a hardening of U.S. policy toward Venezuela, driven in part by Secretary of State Marco Rubio, a long-time advocate of strict sanctions against leftist regimes in Latin America. Rubio announced the decision publicly, calling the previous license a “pro-Maduro Biden oil license” and emphasizing that the U.S. would not support any measure that indirectly benefits the Venezuelan government.
Chevron, the last major American oil company operating in Venezuela, now finds itself forced to halt production operations in a country that holds the world’s largest proven oil reserves. The California-based energy giant had maintained a presence in Venezuela even after other foreign firms pulled out under pressure from Hugo Chávez’s government and, later, Maduro’s regime. Currently responsible for over a quarter of Venezuela’s oil output, Chevron had hoped its operations could remain a bridge to future engagement once political conditions changed.
The expiration of the license is a significant setback for Chevron, which had deployed a powerful lobbying effort in Washington to extend its operations. In a statement to the Financial Times, a company spokesperson confirmed that the license had expired and that Chevron’s operations in Venezuela “remain in compliance with all applicable laws and regulations, including the sanctions framework provided for by the US government.”
Despite the expiration, reports indicate the Trump administration may still allow Chevron to maintain its physical infrastructure in Venezuela under a narrower authorization, potentially enabling a faster return if political conditions shift.
Tensions within the Trump administration on Venezuela policy have been evident. Richard Grenell, a Trump envoy with responsibilities that include Venezuela, recently traveled to Antigua to negotiate the release of a U.S. hostage and indicated that a deal with Maduro — including a license extension — could be forthcoming. That suggestion was swiftly undercut by Rubio’s firm stance, highlighting internal divisions over how best to handle the long-standing diplomatic impasse with Caracas.
The decision comes amid broader political complexities. Analysts note that while the administration is toughening sanctions, it may eventually need to engage with Maduro, especially if it intends to return more than 350,000 Venezuelans in the U.S. who recently had their temporary protected status revoked.
“There’s this tug of war between the two sides in Trumpland,” one former Trump administration official told the Financial Times. “You’ve got the hardliners pushing for pressure and others looking at the bigger geopolitical or humanitarian picture.”
Inside Venezuela, the opposition, led by Maria Corina Machado, has welcomed the move and urged Washington to remain firm. They argue that Chevron’s operations provided financial lifelines to the Maduro regime, allowing it to maintain control despite international condemnation of last year’s disputed presidential election.
However, Maduro appears to be digging in, buoyed by support from China and Russia. Many in Caracas suggest that the regime, having survived previous rounds of U.S. “maximum pressure” sanctions between 2018 and 2022, is now better prepared to weather further economic isolation.
“We have a far smaller economy now than we did 10 years ago,” said one senior business leader in Caracas. “Now we’ve got used to it, and the government is closer to Russia and China than it used to be. Maduro won’t have such a big problem surviving US oil sanctions this time.”
While the immediate market response to the license expiry has been muted — Venezuelan bond prices on the secondary market held steady — the long-term outlook remains uncertain as the geopolitical chessboard shifts and U.S. strategy in Latin America continues to evolve.
