U.S. Rejects Natural Gas Permits in Venezuela-Trinidad Project During Maduro's Announcement of Economic Crisis
Title: Trump Admin Pulls Gas Project Licenses: Here's The Lowdown
Stow away your seatbelts, folks, because we're diving into the latest political whirlwind! Caracas, April 9, 2025, and the Trump administration has yanked the licenses for a couple of offshore natural gas projects involving our buds from Venezuela, Trinidad, and Tobago, and a slew of multinational corporations.
Now, you might be wondering — why the heck is this happening? Let me spill the tea!
It seems this move is all part of an escalating economic sanctions saga against our Latin American pal, Venezuela. The U.S. has been amping up the pressure, pulling back on permits for projects sporting anything Venezuelan. And let's not forget about that ol' looming threat: they're prepared to slap "secondary tariffs" on any countries that dare to import Venezuelan crude or gas.
Trinidad's prime minister, Stuart Young, called Washington's decision "disappointing but not unexpected" during a press conference. He mentioned his government had "plans B, C, and D" up its sleeve, and he'd give the U.S. Secretary of State Marco Rubio an earful about these strategic projects for Trinidad and Tobago. A notable point: Port of Spain is currently the largest Latin American exporter of liquefied natural gas (LNG).
As for little Venezuela, their authorities haven't weighed in on the licenses' removal just yet.
This ain't the first rodeo for folks like Chevron, Repsol, Eni, and Maurel & Prom, who've been given till May 27 to wrap up their energy sector dealings with Venezuela's state company, PDVSA. The White House is returning to its "maximum pressure" campaign against the oil-rich nation, which has been taking bites out of Venezuela through financial sanctions, an export embargo, secondary sanctions, and a slew of other measures aimed at tubing their most vital revenue source.
Now, let's talk about the projects that have lost their licenses. The four-trillion cubic feet (tcf) Dragon field, wholly located in Venezuelan waters, saw PDVSA grant Trinidad's National Gas Company (NGC) and Shell a 30-year license for gas extraction. Meanwhile, the Cocuina-Manakin field, home to 1 tcf worth of reserves, was to be developed by BP on a 20-year contract, with PDVSA excluded as a shareholder.
Venezuela holds an impressive 200 tcf of untapped natural gas reserves, with the Maduro government desperate to attract foreign investment. They've been offering more advantageous conditions for multinational corporations working on gas projects, compared to oil.
Eni CEO, for example, stated that natural gas production would continue, and they're having chats with U.S. authorities to find "solutions" to receive payments from PDVSA. On the other hand, the Maduro government has vowed to resist the ramped-up sanctions and tariff threats. They've even backed a new decree granting the executive emergency powers to take economic measures.
Now, after seven years of recession, Venezuela has experienced GDP growth since 2021, although its economy still remains at just 30 percent of its size in 2014. A more liberal policy approach from the Maduro government saw inflation reach 12-year lows at the end of 2024. However, foreign exchange instability has recently triggered uncertainty and renewed inflation.
So, there you have it! A whirlwind tour through the world of petroleum politics. Buckle up and get ready for more twists and turns in this wild ride. And remember, folks: always keep an eye on the Washington-Caracas tango for signs of a potential oil dance!
- The Trump administration has revoked licenses for offshore natural gas projects involving Venezuela, Trinidad, Tobago, and multinational corporations, signaling an escalating economic sanctions saga against Venezuela.
- These strategic projects for Trinidad and Tobago, especially the largest Latin American exporter of liquefied natural gas (LNG), are now under scrutiny due to the U.S.'s decision.
- The U.S. government may impose "secondary tariffs" on countries that import Venezuelan crude or gas, further complicating the situation.
- Trinidad's prime minister, Stuart Young, has expressed disappointment but not surprise, hinting at alternative plans for the country.
- In the aftermath, multinational companies like Chevron, Repsol, Eni, and Maurel & Prom have a deadline of May 27 to conclude their energy sector business with PDVSA.
- The Dragon field and Cocuina-Manakin field, both rich in natural gas reserves, have lost their licenses in this political shuffle.
- Venezuela holds an impressive 200 tcf of untapped natural gas reserves, with the Maduro government seeking to attract foreign investment.
- Natural gas production will continue, with Eni CEO working on finding "solutions" to receive payments from PDVSA, despite the political hurdles.
- The Maduro government has resisted the increased sanctions and tariff threats, even backing a decree granting the executive emergency powers to take economic measures.
- After seven years of recession, Venezuela has shown signs of GDP growth since 2021, but its economy still remains at 30 percent of its 2014 size.
- A more liberal policy approach from the Maduro government saw inflation reach 12-year lows at the end of 2024, although foreign exchange instability has caused renewed concerns.
- This political face-off between Washington and Caracas continues to have far-reaching implications for various sectors like finance, industry, real estate, education and self-development, career development, policy and legislation, politics, general news, crime and justice, skills training, sports, and even sports betting.
