Chevron to Give Oil, Not Cash, to Venezuela Under Tight U.S. Controls

Chevron’s operations in Venezuela show how international business and politics shape the way energy gets to global markets. Under a new US government license, Chevron can now pump oil in Venezuela again, but with very strict conditions.

Instead of paying Venezuela’s government with money, Chevron must deliver part of the oil it produces there straight to the state oil company, PDVSA.

This goes back to US rules that block President Nicolás Maduro’s government from directly earning money from its oil due to sanctions. Venezuela once produced nearly 3 million barrels a day, but neglect and sanctions cut that to just under 900,000 barrels by early 2025.

Chevron’s renewed work could stop production from falling further, maybe even boosting output to 1 million barrels daily if repairs and new parts come through. Venezuela now sells almost all its oil to China, as US and European markets are basically shut.

In May 2025, customs data shows China took about 584,000 barrels per day from Venezuela, leaving only scraps for other buyers.

PDVSA, Venezuela’s state oil firm, relies on complex shadow deals and middlemen to move its oil. Proceeds are harder to track and less reliable than direct sales to open markets.

The US government says the main goal is to keep Maduro’s government from getting easy cash while allowing vital oil trade to continue in a controlled way. Chevron only delivers oil as payment, not cash.

This way, Venezuela must find its own buyers and can’t spend dollars outside channels approved by the US Treasury. Chevron has worked in Venezuela for over 100 years and still has valuable skills and equipment there.

The US wants to keep a US-company presence in a country with the world’s biggest oil reserves but without helping a regime it considers anti-democratic and corrupt.

Analysts say Chevron’s expertise helps keep oil fields running, but major repairs and investment remain blocked by US restrictions and Venezuela’s own problems.

This deal shows how politics, business risk, and energy needs all collide. Venezuela gets to keep its oil industry alive, but only just. Chevron can keep working and profit, but only in a restricted way.

The US gets some stability in the oil market and gives no easy win to Maduro. For the world, the story is how strategic interests and sanctions shape who gets oil, who profits, and what is allowed in one of the most important oil powers on earth.

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