Maduro Affirms Oil Production Resilience Despite Chevron’s Exit

Venezuelan President Nicolás Maduro insists oil production will not decrease despite the U.S. terminating Chevron’s export license. Opposition leader María Corina Machado believes this decision will limit funding for repression while economic analysts warn of potential negative impacts on Venezuela’s economy. Recent electoral claims against Maduro suggest unresolved issues in governance.

Venezuelan President Nicolás Maduro asserted that his country will not experience any reduction in oil production following the United States’ revocation of Chevron’s export license. During his weekly television broadcast, Maduro confidently stated that production would even increase under his initiative termed “Absolute Productive Independence,” regardless of sanctions imposed by U.S. President Donald Trump. He emphasized, “Oil production will be maintained and will continue to grow,” highlighting his commitment to the Venezuelan populace’s welfare.

The U.S. government’s decision to limit Chevron’s operational duration to 30 days, a significant decrease from the standard six months, was attributed to Maduro’s failure to fulfill electoral and deportation obligations. Chevron’s involvement has historically bolstered Venezuela’s oil production to over 1 million barrels per day, marking its highest output since June 2019. Despite Maduro’s assurances, this development represents a considerable setback for the nation’s economy.

Opposition figure María Corina Machado expressed support for the U.S. actions, contending that they would restrict the funds available to Maduro’s regime for its repressive activities rather than supporting public services. Machado noted that the government amassed approximately $4.5 billion last year from Chevron’s oil operations, funds which were purportedly used for maintaining elite forces and the luxurious lifestyles of Maduro’s associates.

Machado articulated that the revenues from oil “didn’t go to hospitals and schools, it was spent on repression,” underscoring the detrimental effects on public welfare. She posed a critical question regarding the allocation of these funds, pointing out, “Where did that money go?” suggesting it enhanced the capabilities of repressive forces.

Economic analysts from Ecoanalítica predict that Chevron’s exit may decelerate Venezuela’s economic growth projection from 3.2% to 2%, resulting in a potential weakening of the bolivar, the nation’s currency, and exacerbating inflation, which was noted at 48% in 2024. Previously, the Biden administration had granted Chevron a license in 2022 to promote electoral fairness, yet recent allegations of electoral misconduct marred Maduro’s alleged victory in July 2024.

In summary, President Nicolás Maduro maintains that Venezuela’s oil production will not decline despite Chevron’s departure, and he promises growth through his economic strategy. However, opposition leaders argue that this decision will hinder resources used for state repression rather than public welfare. Analysts foresee economic repercussions, suggesting a slowdown in growth and increased inflation, while the recent electoral outcomes have raised concerns about fairness.

Original Source: en.mercopress.com