The U.S. administration under Donald Trump has given Chevron a one-month ultimatum to cease oil production in Venezuela, significantly escalating pressure on President Nicolas Maduro’s government. The Treasury Department’s April 3 deadline provides a much shorter wind-down period than typically granted, delivering a substantial blow to Maduro’s regime and its oil revenues. This abrupt timeline aims to compel Maduro to negotiate democratic reforms and accept more migrants from the U.S.
Experts suggest the short deadline may be a strategic move by the U.S. government. Geoff Ramsey of the Atlantic Council believes that the administration might be open to renewing Chevron’s license in April if negotiations yield progress. Terminating Chevron’s operations could remove up to 200,000 barrels of oil per day from the global market, impacting refineries along the U.S. Gulf Coast that are specifically designed to process Venezuelan heavy crude oil. The rapid shutdown intensifies the economic strain on Venezuela and poses logistical challenges for Chevron, which must quickly unwind its operations within the country.