If we stay on this trend, Trump would be taking a whole new approach towards the South American nation. In his first administration, he tried to isolate the country economically and politically to oust Nicolás Maduro’s regime. Joe Biden tried to leverage existing sanctions to push for a democratic election. But now, Trump 2.0 would be looking out for the interests of American businesses and consumers first, at the expense of other considerations.
The Biden administration had indeed introduced a lot of red tape into the energy industry that has made it more difficult for companies to expand their operations—yet they still managed to do it and bring oil and gas production to new highs. Price, however, seems to remain a rather sensitive subject. The industry has not hidden its reluctance to drill at will just because Trump is president; instead, it has indicated that it will stick to its new focus on fiscal discipline and making shareholders happy. Indeed, the industry’s agenda here is at odds with the president’s, since his involves cheaper energy.
Chevron has been exporting some 240,000 barrels of Venezuelan crude to the United States daily thanks to the waiver. The amount constitutes a quarter of the country’s total oil production and generates substantial revenues that stay in the Venezuelan economy, Bloomberg reported earlier this week, arguing Chevron’s presence was critical for that economy. These revenues are running at some $6 billion.
Industry executives are prepared to praise Trump’s early moves, including his decision to end a Biden-era permitting pause that halted new authorizations to export liquefied natural gas overseas. The Trump administration has already moved to issue those licenses, with the most recent coming Wednesday for Venture Global LNG Inc.’s CP2 project in Louisiana.
Earlier, Ukrainian President Volodymyr Zelenskyy declined a proposal by Trump to acquire approximately 50% of Ukraine’s rare earth mineral rights. Valued at several trillion dollars, Ukraine’s mineral reserves include lithium, titanium and graphite which are essential for high-tech industries. The proposal was delivered by U.S. Treasury Secretary Scott Bessent as part of a bid to compensate Washington for assistance to Kyiv. Trump had suggested that Ukraine owed the United States $500 billion worth of resources for its past military support. However, Zelenskyy sought better terms, including U.S. and European security guarantees. Trump’s proposal did not include provisions for future assistance, which Zelenskyy deems necessary. Zelenskyy’s team has developed an offer for a mineral partnership in exchange for security guarantees, which was announced earlier this month.
The U.S. Treasury just gave Chevron Corp. a short 30-day eviction notice from Venezuela, cutting off its ability to pump and sell crude from the sanctioned country. The decision, following Trump’s vow to reverse Biden’s oil concessions to Nicolás Maduro and the cancellation of a sanction waiver just days ago, is a seismic shift that could slam both Venezuela’s already fragile economy and U.S. refiners relying on its heavy crude.
Canadians overwhelmingly support retaliatory tariffs, with Bloomberg reporting that 82% support export levies on oil exports if Trump imposes tariffs on Canadian oil. Whereas Canadians traditionally considered export taxes on energy to be politically divisive, the robust backing reveals the level of anger amongst the public over Trump’s actions and gives Justin Trudeau’s government greater license to respond in kind if Trump carries out his threat.
Last week, U.S. President Donald Trump unveiled the National Energy Dominance Council that is tasked with enhancing America’s energy security and cutting reliance on foreign entities.
Goldman Sachs has provided estimates that a proposed 10% U.S. oil tariff could cost foreign producers $10 billion per year, with Canadian and Latin American heavy crude producers heavily reliant on U.S. refiners due to limited alternative buyers and processing capabilities.
Trump has repeatedly stated that the energy industry is crucial for the country’s growth and wellbeing, and wasted no time in launching support measures, such as the removal of the Biden administration’s pause on new LNG export terminal approvals and easing red tape around oil and gas exploration and production.