The Trump administration revoked licenses and waivers on Saturday, barring Western energy firms from operating in Venezuela, sources close to the matter revealed. This move further isolates President Nicolás Maduro from global oil markets.
It targets companies like Global Oil Terminals, led by Florida energy tycoon Harry Sargeant III, alongside Spain’s Repsol and France’s Maurel et Prom.
These firms face a deadline of May 27 to halt operations, impacting deals with Venezuela’s state-owned PDVSA.
The decision also scraps permits for gas companies tied to PDVSA, tightening the economic noose.
Previously, the U.S. Treasury issued authorizations allowing firms to export Venezuelan oil despite sanctions, a workaround now dismantled.
Global Oil Terminals must settle financial ties with PDVSA by April 2, clearing debts from asphalt purchases.
Trump’s Further Crackdown Deepens Venezuela’s Oil Isolation. (Photo Internet reproduction)
Sargeant secured a two-year waiver last May to supply the U.S. and Caribbean, but that lifeline ends now.
Chevron, another major player, also received a May 27 cutoff to exit, part of Trump’s push for democratic reforms and migrant returns.
Venezuela sits on the world’s largest proven oil reserves, yet production has plummeted from 3.2 million barrels daily decades ago to under 1 million today.
Sanctions, corruption, and mismanagement crippled PDVSA, slashing output. Chevron’s 240,000 barrels per day once offered relief, but its departure risks further decline.
The Treasury remains silent, as do the White House, National Security Council, and State Department. Repsol, Maurel et Prom, and PDVSA also declined to comment.
Trump’s Further Crackdown Deepens Venezuela’s Oil Isolation
Meanwhile, Maduro’s regime loses critical revenue—Chevron alone contributed billions in taxes since 2022, per industry estimates.
Trump’s strategy echoes his first term’s “maximum pressure” campaign, now intensified with tariffs.
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Countries buying Venezuelan oil face a 25% levy on U.S. trade starting April 2, hitting China, India, and Spain hard. China, importing 351,000 barrels daily in 2024, may rethink its stance.
This escalation aims to choke Maduro’s finances, linked by Trump to migration and crime, like the Tren de Aragua gang’s U.S. presence.
Critics argue it may spike migration further as Venezuela’s economy worsens. Oil prices rose 1% after the tariff news, though U.S. output cushions global supply fears.
For businesses, the stakes are clear: lost investments and disrupted supply chains loom large.
Sargeant’s Republican ties add a political layer, but the core issue is economic—Venezuela’s oil, once a lifeline, now fuels a standoff with global ripples.