Chevron is operating in the middle of Trump’s pressure campaign in Venezuela
NEWYou can now listen to Fox News articles!
The Trump administration’s escalating crackdown on sanctioned Venezuelan oil shipments has left Chevron in an unusually precarious situation.
Chevron, the last remaining US oil company in Venezuela, operates in the high-tension area between Washington’s pressure campaign and the world’s largest oil reserves.
This campaign was on full display on December 10, when US authorities seized an ordinary tanker quietly transporting Venezuelan crude, the only ship in the shadow fleet providing sanctioned oil flows.
This week, Trump took the campaign to a new level by ordering a complete blockade of all sanctioned oil tankers heading to or leaving Venezuela.
‘GHOST SHIPS’ BRINGING ILLEGAL OIL REACHED TRUMP’S ENGAGEMENTS
View of the ship “Yesin”, largely considered part of the world’s “shadow fleet” of oil tankers. (Image alliance via Stefan Sauer/Getty Images)
Although Chevron is not the target of the blockade, the order still creates new uncertainties for the company’s operations in Venezuela’s tightly controlled oil sector.
“In the case of Chevron, the U.S. government is allowing the oil to be transported, but it’s certainly a very sensitive place,” said Vanda Felbab-Brown, senior fellow at the Strobe Talbott Center for Security, Strategy, and Technology at Brookings.
But Chevron’s position is only part of the equation. The administration faces significant limitations on how aggressively it can enforce the tanker blockade, Felbab-Brown said.
“This is a major undertaking. The United States has the assets and political will to do this to some extent in Venezuela,” he said, adding: “It would consume a lot of resources for the United States to seize or locate every ship.”
VENEZUELA HAS THE WORLD’S LARGEST OIL RESERVES. HERE’S HOW OTHERS COMPARE
Chevron said its operations were not affected by the latest tension.
“Chevron’s operations in Venezuela continue uninterrupted and in full compliance with the laws and regulations applicable to its business, as well as enforcement frameworks provided by the U.S. government,” Bill Turenne, Chevron’s head of public policy communications, said in a statement to Fox News Digital.
Chevron said in a statement to Fox News Digital that its Venezuela operations continue without disruption. (Brandon Bell/Getty Images)
Chevron offered no assessment of the broader security environment, saying only: “Any questions regarding the security situation in Venezuela should be directed to the appropriate officials of the U.S. government.”
The US energy giant has operated in Venezuela for a century and is the only remaining American company after the government forced Western firms into minority partnerships with state oil company Petróleos de Venezuela, SA (PDVSA).
CLICK TO DOWNLOAD FOX NEWS APPLICATION
For Maduro’s government, oil shipment disruptions are at the heart of economic survival.
“Venezuela is completely dependent on oil,” said Benjamin Jensen, who heads the Futures Laboratory at the Center for Strategic and International Studies. “Anything that puts pressure on their ability to bypass sanctions and trade oil is a direct threat to the economy and therefore to the regime,” he added.
White House press secretary Karoline Leavitt said the United States intends to seize the oil on the tanker. (Report via Planter Labs/PBC/Reuters)
Diana Furchtgott-Roth, director of the Center for Energy, Climate and Environment at the Heritage Foundation, called the blockade a warning beyond Venezuela.
“President Trump said this escape attempt sanctions “Rogue regimes will no longer be allowed to use its oil,” he said.
“I don’t know how many ships need to be captured for this message to get through,” he added.
How aggressively the administration enforces the blockade and how effectively Venezuela adapts will determine whether the latest move delivers a decisive economic blow or turns into another costly game of sanctions.
