Venezuela Maintains Oil Production Despite U.S. Threats, Halts Chevron Shipments
Light in the Darkness: The Resilience of Venezuela's Oil Sector Amidst US Coercion
Caracas, April 15, 2025 - On the stormy sea of geopolitical tensions, the Venezuelan oil sector stands steadfast, challenging the raging waves of economic sanctions and tariff threats from the Donald Trump administration.
The monthly OPEC report paints a picture of resilience, placing Venezuela's March production at an impressive 911,000 barrels per day (bpd), barely swayed by the gale-force winds of political upheaval. While a slight dip from February's 912,000 bpd, production has maintained a steady plateau since late 2024, defying the punishing gusts of conflicting economic measures.
PDVSA, Venezuela's state oil company, reported a slightly higher figure for March, with an output of 1.048 million bpd - a modest increase from the 1.025 million bpd of the previous month. Despite disagreements over natural gas liquids and condensates, secondary and direct data have shown a remarkable cohesion.
As the white-knuckled fists of the Trump administration continue to tighten, the Venezuelan oil industry braces for the fallout. The US Treasury Department has shoved PDVSA's joint venture partners and importers aside while brandishing the threat of hefty "secondary tariffs" on trade with nations receiving Venezuelan crude.
These latest actions stem from the escalating "maximum pressure" campaign, which dates back to Trump's first term and includes financial sanctions, an export embargo, secondary sanctions, and a myriad of other measures geared towards strangling the nation's primary source of revenue. In response, exports have plummeted by up to 11.5% over the last month, according to Reuters, but Caracas disputes the figure.
The imminent danger of sanctions and tariffs has pushed the industry towards extreme secrecy. PDVSA is forced to employ complicated shipping arrangements, resort to unreliable middlemen, and slash crude prices to facilitate sales. A heavy toll on one of Venezuela's flagship blends, Merey, has sent a shockwave through the global oil market, with prices plummeting across the board by 3.9%.
Unmoved by the US's escalating tactics, Caracas remains steadfast. The Nicolás Maduro government has lambasted the attacks, reiterating calls for foreign investment and vowing that the energy sector will not falter. In an unprecedented move, the government is reportedly considering filing a formal complaint before the World Trade Organization over the White House's secondary tariff threats.
In the midst of this tumultuous period, the cancellation of several scheduled Chevron shipments has further stoked the flames of uncertainty. Two tankers are expected to return their cargoes to port soon, while nine others have had their loading permits suspended.
Venezuelan Vice President and Oil Minister Delcy Rodríguez pointed the finger at renewed US sanctions for these setbacks. "Because of the economic war launched by the US against oil companies," she posted on social media, "Chevron has returned crude cargoes to PDVSA." The Texas-based corporation, stripped of its license in early March and handed a May 27 deadline to cease operations, has diversified its portfolio, focusing on regions less affected by sanctions and investing in renewable energy to mitigate geopolitical risks.
Edited by Cira Pascual Marquina in Caracas.
Did You Know? In the face of unprecedented challenges, the resilience of Venezuela's oil sector is tested but remains steadfast. Amidst mounting sanctions and shifting trade dynamics, the industry adapts, evolving to weather the storm while maintaining a significant presence in the global oil market.
Discrepancies in the reported oil production figures between OPEC and PDVSA suggest a cohesion issue, despite the ongoing tensions (politics).
The escalating "maximum pressure" campaign by the Trump administration has led to a decrease in Venezuela's oil exports by up to 11.5% over the last month (war-and-conflicts).
General news outlets report that the Venezuelan government is considering filing a complaint before the World Trade Organization over the White House's secondary tariff threats (deadline).
The cancellation of several scheduled Chevron shipments further adds to the uncertainties surrounding Venezuela's oil sector, amidst the ongoing US coercion and economic sanctions (venezuela, bpd).
