Chevron CEO Mike Wirth issued a stark warning about the firm’s possible departure from Venezuela as a Biden-era license allowing the company to operate in the country is set to expire.
Chevron, which is only allowed to export Venezuelan oil to the United States, has been under pressure from the Trump administration to halt drilling in the politically turbulent nation.
But Wirth, who is currently negotiating with the administration, argued against the move over concerns about energy security and growing Chinese influence in the Western Hemisphere.
“We’ve seen this playbook before in Africa, in Latin America, in Central Asia,” Wirth told Maria Bartiromo on Sunday. “And China has created a stronger presence, stronger influence, and control over economies and governments around the world through using their economic assets and position to do so.”
“I think that’s an important issue that is something that the administration is thinking about, and I think it’s very appropriate for them to bear that in mind.”
President Donald Trump initially announced in February he was ending the license, calling Biden’s agreement “ineffective and unmet.” He ordered U.S. oil firms to begin winding down their presence in the country starting March 1.
“We are hereby reversing the concessions that Crooked Joe Biden gave to Nicolás Maduro, of Venezuela, on the oil transaction agreement, dated November 26, 2022,” Trump announced on Truth Social.
“Additionally, the regime has not been transporting the violent criminals that they sent into our Country (the Good Ole’ U.S.A.) back to Venezuela at the rapid pace that they had agreed to.”
The president reportedly reversed course in March, extending the license until May 27, according to CNBC.
Trump also mandated any countries buying Venezuelan oil pay a 25% tariff when trading with the United States. Even so, Wirth warned that if the company ceases oil drilling in Venezuela, it will have profound national security and energy security implications.
“Refineries on the Gulf Coast are designed to run that specific type of oil, and so it’s very important for energy security in the U.S.,” he said. “The changes in the rules mean that oil won’t flow to the U. S. now, so making us less secure.”
“China is actually the largest buyer of Venezuelan oil today, and I think the discussions that you reference, Venezuelan government officials have been in China very recently encouraging China to buy more… the policies could drive even more of that trade to China.”
He mentioned that if Chevron halts operations, that would create a void for Chinese and Russian companies to fill.
“We’re the only American company that remains on the ground in Venezuela, which sits right across the Gulf of America from our country,” he said.
“And if we were to leave, as others have, the oil production continues and American companies are replaced by companies from other countries, and historically that’s been Chinese companies, Russian companies, and others that are not necessarily in America’s interest to see our hemisphere ceded to companies from other countries that we don’t have the same kinds of relationships with.”
Despite Wirth’s rationale, Venezuelan opposition leader María Corina Machado — who also appeared on Fox News Channel, Sunday — praised Trump’s strategy as “absolutely correct and effective,” telling “Fox & Friends Weekend” that Maduro is facing his “weakest position yet.”
“Maduro is the head of the criminal structure that has turned Venezuela into a safe haven of drug cartels, guerrilla, and the enemies of the Western Hemisphere, such as agents of Iran, Russia, and other international criminal groups,” she explained.
“What Maduro is allowing right now, it’s just crumbs to get out of Venezuela. But Venezuela is, right now, the country with the largest proven oil reserves in the world and also in gas,” she added. “So we can turn Venezuela from the criminal hub of the Americas into the energy hub of the Americas, but that can only happen with a democratic government.”
Chevron exports about 240,000 barrels per day of crude from its Venezuela operations, over a quarter of the country’s entire oil output.
Fox News’ Charles Creitz, FOX Business’ Anders Hagstrom and Reuters contributed to this report.
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