With the U.S. oil industry treading in unchartered and uncertain economic waters as a result of the spread of the Coronavirus and a price war initiated by Russia, the Trump administration has taken several bold steps to follow through with their promise help the ailing energy sector.
In addition to pulling off what was nothing less than a coup when he convinced Russia and Saudi Arabia to put their difference aside and cut oil production, President Trump pushed for and got a $2 trillion stimulus package to help small businesses and Americans during the shutdown of the U.S. economy.
The U.S. Treasury has renewed a license that allows Chevron Corp. and U.S. oilfield service providers Halliburton, Schlumberger, Baker Hughes, and Weatherford International, to continue working in Venezuela, conducting limited maintenance of essential activities.
“Our legacy in Venezuela dates back to the 1920s and since then, we have been proud to be part of the local communities, contributing to their economic and social development,” stated Chevron spokesman Ray Fohr “We will continue our health and nutrition programs and other social investment initiatives.”
The renewal of the license helps alleviate the hemorrhaging of U.S. jobs the industry has been sustaining.
Forcing American oil companies to exit Venezuela would mean losses of hundreds of millions of dollars in revenue and thousands of jobs to U.S. companies, both large and small. The administration saw the potential problem and realized that this strategic move would also hold Russian and China at bay from completely controlling that country’s oil industry.
Maduro's obsession with power has destroyed our oil production, PDVSA, and prevented major energy companies from developing their activities to contribute to the country's development. Maduro does not care about #Venezuela but about his destructive power. https://t.co/bopDYXpMtc pic.twitter.com/SGSFzoiDrH
— CARLOS VECCHIO (@carlosvecchio) April 22, 2020
Florida Congressman Ross Spano (R) applauded President Trump’s decision to initiate the first step in helping the U.S. oil industry protect American jobs and further safeguarding national security within the Western Hemisphere as Russia and China continue to expand their footprint in Venezuela while supporting the Maduro regime.
“Protecting American assets around the world is a priority for the Trump Administration, and U.S. assets in Venezuela are no different,” stated Rep. Spano “I applaud the Department of the Treasury recent move to protect U.S. energy sector assets in Venezuela. A healthy American energy sector is not only vital to our national security but also has a direct impact on our economy and our small businesses.”
Just how important is this license renewal?
With Chevron, Halliburton, and others allowed to keep working in Venezuela, and as the administration’s “maximum pressure” policy continuing to take a crippling toll on the Maduro regime, the U.S.-recognized Juan Guaido government will be able to count on existing and critical oil infrastructure that would help during reconstruction.