U.S. Eases Venezuela Oil Sanctions, Opens Door for American Firms to Revive Crude Sector

WASHINGTON/ CARACAS — In a significant policy shift, the U.S. Treasury Department on Thursday issued a sweeping license that permits American companies to export, sell, store, and refine Venezuelan crude oil, marking the most substantial easing of sanctions since the change in leadership in Caracas.

The general license is designed to accelerate the flow of Venezuelan oil to international markets and kickstart an economic revival, but it stops short of authorizing new upstream production projects within the country. Currently, only Chevron Corp. operates there under a separate, existing authorization.

This move follows recent legislative reforms in Venezuela that overhauled its hydrocarbon laws—changes long sought by foreign investors. The White House sees revitalizing the oil sector, decimated by years of mismanagement and underinvestment, as critical to stabilizing the nation's economy after the ouster of former President Nicolás Maduro.

"This is the necessary green light for capital to start flowing back," said energy analyst Rebecca Shaw of the Global Energy Institute. "It unlocks the midstream and downstream logjam, allowing stored oil to move and refineries to hum again. The real test will be if it attracts the billions needed for upstream rehabilitation."

However, significant constraints remain embedded in the license. It explicitly prohibits transactions with Chinese-linked entities, which were major buyers of discounted Venezuelan crude under Maduro. All payments to Venezuela's state oil company, PDVSA, must still transit U.S.-controlled accounts, and contractual disputes are subject to U.S. law.

"This isn't a free pass; it's a tightly controlled corridor," noted Michael Thorne, a senior fellow at the Atlantic Council. "The Treasury is demanding detailed reports on the final destination of all oil, maintaining a firm grip. The exclusion of China is a stark reminder that geopolitical priorities are still steering this process."

The license also formally authorizes oil-for-product swaps, a mechanism crucial for European firms like Repsol and Eni to recoup past debts. Analysts suggest that prohibited activities, including potential future sales to China or new U.S. production projects, could still be approved on a case-by-case basis.

President Trump, addressing his cabinet, framed the move as mutually beneficial: "We're opening a path for tremendous wealth to return to Venezuela and for the United States. The oil companies will do well, and Venezuela will make more money than ever before."

Reaction & Analysis:

• Carlos Mendez, Energy Consultant (Caracas): "This is a pragmatic first step. The license addresses the immediate need to clear storage tanks and generate cash flow. The new hydrocarbon law offers better terms, but investors will wait for guarantees on legal stability and see if the upstream restrictions loosen."
• Senator Linda Gross (R-AZ): "A necessary move to deprive Maduro's remnants of resources and empower the legitimate interim government. We must ensure every dollar is accounted for and used for the Venezuelan people's benefit, not for corruption."
• Professor Anya Petrova, Geopolitics Analyst (NYU): "This carefully calibrates economic stimulus with control. By keeping China out and funds in U.S. accounts, Washington aims to rebuild Venezuela's oil sector in its own image and strategic interest. It's nation-building via the energy industry."
• Jake Rivera, Commentator, 'The Daily Pulse' Podcast: "Are we serious? This is a handout to Big Oil disguised as foreign policy. We're legitimizing a regime change by promising corporate plunder of a broken country. 'Tremendous wealth' for whom? Not for the average Venezuelan who'll see their resources extracted under terms dictated from Washington."

The interim government of Acting President Delcy Rodriguez has been actively pitching improved fiscal terms and reduced bureaucracy to attract foreign investment. Meanwhile, trading firms like Vitol and Trafigura have already begun moving crude that was stranded during the earlier sanctions blockade.