By The Rio Times | Created at 2025-01-27 18:20:50 | Updated at 2025-01-31 23:51:12
4 days ago
Venezuela’s oil sector, once the backbone of its economy, stands at a critical juncture. Recent production gains may soon reverse as Donald Trump returns to the White House.
In 2024, Venezuela’s crude output reached 921,000 barrels per day, a 17.6% increase from 2023. This growth followed the easing of U.S. sanctions under President Biden, allowing companies like Chevron to resume operations.
Trump’s election victory in November 2024 has cast doubt on these arrangements. His administration is expected to take a harder line against Nicolas Maduro‘s government. Secretary of State Marco Rubio has signaled a potential review of current licenses.
Experts warn that revoking oil licenses could slash Venezuela’s production by up to 30%. This would erase recent gains, bringing output down to about 644,700 barrels per day.
The licenses aimed to boost production, improve transparency, and divert exports away from China. These goals may now be in jeopardy as Trump’s team crafts new plans to pressure Maduro.
Venezuela claims it can reach 1.5 million barrels per day through its own efforts. However, analysts doubt this without significant foreign investment and expertise.
The situation underscores the complex relationship between geopolitics and energy markets. As the Trump administration takes shape, oil companies and investors watch closely. The coming months will reveal whether recent progress will continue or if a new era of isolation begins for Venezuela’s oil industry.
