Exclusive: US Quickens Expansion of Chevron's Venezuela License, Says Energy Secretary

• Chevron's current license requires paying Venezuelan royalties in oil rather than cash, limiting exports to about 50% of production; the new license will allow cash payments and full export capacity
• The U.S. is marketing up to 50 million barrels of stranded Venezuelan oil at roughly $45/barrel (a $15 discount to Brent crude), compared to the $31/barrel Venezuela received under Maduro
• Oil sale proceeds are deposited in Qatari bank accounts controlled by the U.S. government due to banking regulations and sanctions, though Wright indicated preference to eventually move funds to U.S. banks

Summary: US Expedites Expansion of Chevron's Venezuela License

The U.S. is accelerating approval of an expanded oil production license for Chevron in Venezuela, Energy Secretary Chris Wright confirmed to Reuters on January 16. The new license terms will allow Chevron to pay Venezuelan government royalties and taxes in cash rather than crude oil, enabling the company to sell 100% of its production instead of the current 50%.

Key Developments:

Following the removal of Nicolas Maduro from power earlier this month, the Trump administration has taken control of Venezuela's oil industry and sales. The U.S. announced plans to market up to 50 million barrels of stranded Venezuelan oil, achieving significantly higher prices than under Maduro's regime.

Financial Impact:

Venezuela previously received approximately $31 per barrel (Brent at $60 minus $29 discount). Under U.S. management, the country now receives around $45 per barrel (approximately $15 discount to current Brent prices of $64.13). This represents a 45% increase in realized oil prices.

Banking Arrangements:

Proceeds from Venezuelan oil sales are currently held in Qatari bank accounts controlled by the U.S. government due to regulatory constraints and sanctions. Wright indicated the U.S. ultimately plans to transfer these funds to American banks while maintaining government control.

Market Implications:

The expanded Chevron license and U.S. control of Venezuelan oil sales could increase crude supply to global markets. Chevron's enhanced export capacity positions it as a major crude marketer from Venezuela, potentially impacting regional oil flows and pricing dynamics. The development signals closer U.S.-Venezuela energy cooperation post-Maduro and increased American involvement in Venezuelan oil operations.