Trump Administration Negotiates With Chevron On Company's Venezuela Business

The second Trump Administration has brought a flurry of foreign policy changes to the federal government. Its latest action puts oil giant Chevron Corp CVX, typically a beneficiary of Republican administrations, into its crosshairs.

What Happened: Chevron is in communication with the Trump Administration over the Houston-based company's business in Venezuela, Bloomberg reports.

Trump could revoke Chevron’s license to operate in the country.

Chevron is the only domestic oil producer with a license to operate in Venezuela. The U.S. has several outstanding sanctions against the South American country, led by President Nicolás Maduro. Many commentators describe Maduro as a dictator.

Company executives told the Financial Times that the elimination of the license would allow Russia and China to gain outsized influence in Venezuela. Joe Biden, Trump’s predecessor, issued the license in 2022.

Why it Matters: In 2023, the company’s Venezuelan operations comprised around one percent of its cash flows. The company produces around 20% of Venezuela's total oil.

Considerations to revoke Chevron’s license are not the administration’s only actions regarding the South American country.

The administration rescinded temporary protected immigration status for hundreds of thousands of Venezuelan refugees last week. The administration could enforce deportation against the workers once their immigration status lapses in 2025.

Also Read:

• Bill Ackman Sends UnitedHealth Stock Lower With Deleted Tweet: Here’s What He Said

Image: Shutterstock