The Trump administration is sending mixed signals about the future of American oil operations in Venezuela. Special Envoy Ric Grenell recently claimed that President Trump had approved an extension for Chevron Corporation’s license to extract oil in Venezuela. This operation is a joint effort with the Venezuelan state-owned oil company, PDVSA. However, Secretary of State Marco Rubio contradicted Grenell the following day, stating that the license would expire as scheduled on May 27.
Chevron’s role in Venezuela has sparked significant debate. The confusion over the license’s status highlights the tension within the administration regarding its approach to the Maduro government. Since 2019, both Trump administrations have maintained a tough stance against Maduro, imposing sanctions and accusing him of collaborating with criminal organizations. In contrast, the Chevron license is part of an earlier attempt by President Biden to foster cooperation with Maduro by easing restrictions on American companies.
When Trump took office again in 2025, he appeared to revive his administration’s "maximum pressure" strategy toward Venezuela. In March, the administration announced plans to revoke Chevron’s license effective May 27, but this move has faced opposition. Grenell has been a vocal advocate for a more flexible approach, meeting with Venezuelan officials to secure the release of American prisoners and negotiate deportation flights in exchange for extending Chevron’s operations.
Support for a new strategy has emerged from various circles, including right-wing media figures and some oil industry representatives. Laura Loomer, for instance, argued that ending Chevron’s license could benefit China, allowing it to take over Venezuelan oil fields while harming U.S. energy interests.
On the other hand, Rubio and other proponents of the hardline approach believe that Chevron’s operations financially support Maduro’s regime. They argue that Chevron contributes significantly to Venezuela’s oil production, which is crucial for the country’s economy.
Chevron’s operations are more efficient than those of PDVSA, which has struggled with management issues and corruption. If Chevron withdraws, Chinese companies might step in, but their investments in Venezuela have decreased in recent years due to the country’s economic decline.
As of now, Trump has not publicly addressed the situation regarding Chevron’s license. The next few days will be critical in determining the administration’s stance on Venezuela. Will they stick to the hardline approach, or will they lean towards Grenell’s more transactional strategy?