President Trump may extend Chevron’s sanction waiver for Venezuela after previous refusal, amid discussions of imposing tariffs on nations buying Venezuelan oil to curb China’s influence. Chevron’s operations significantly contribute to the Venezuelan economy, with production goals contingent on potential policy changes.
President Donald Trump is contemplating an extension of Chevron’s sanction waiver for Venezuela, as reported by the Wall Street Journal, citing sources acquainted with ongoing discussions. This deliberation comes after the waiver, which allows Chevron to operate in Venezuela, lapsed earlier this year after Trump’s initial refusal for renewal.
The potential extension emerged during a meeting with oil and gas executives at the White House. Discussions also included the imposition of tariffs on nations purchasing Venezuelan oil, aimed at complicating China’s efforts to expand its influence in Venezuela’s oil sector.
Chevron has warned that failing to extend the waiver may allow China to assume its position in the Venezuelan oil market. The dialogue reflects Trump’s wariness of China’s expansion strategies. Previously, Trump had criticized President Biden for concessions made to Venezuela regarding oil transactions and electoral conditions.
Currently, Chevron contributes approximately 240,000 barrels of Venezuelan crude to the United States daily, representing a quarter of Venezuela’s total oil output and generating around $6 billion in revenues for the Venezuelan economy. Chevron has ambitious plans to increase production from its Petropiar operation by 50%, contingent upon the potential waiver extension and a strategic shift from sanctions to tariffs.
In summary, President Trump’s consideration to extend Chevron’s sanction waiver for Venezuela could significantly impact the oil dynamics between the United States and Venezuela. This potential extension, alongside contemplated tariffs on Venezuelan oil sales, aims to counter China’s influence in the region while ensuring that Chevron’s substantial contributions to the Venezuelan economy are preserved.
Original Source: oilprice.com
