Once again, the Biden administration is content to allow ruthless dictators to sell their oil, while it won’t allow the U.S. to drill for and refine its own oil.
On Saturday, the U.S. granted an expanded license to Chevron to resume oil production — in Venezuela.
“The decision allows Chevron to revive existing oil projects in the U.S.-sanctioned country and bring new oil supplies to refiners in the United States,” reports Reuters. “However, it restricts cash payments to Venezuela, which could reduce the amount of oil available to Chevron.”
The move obviously benefits the Maduro regime in Venezuela by boosting its economy.
“Though I walk in the midst of trouble, You will revive me; You will stretch out Your hand Against the wrath of my enemies, And Your right hand will save me.” Psalm 138:7
The terms of the license prevent Venezuela’s state-run oil company PDVSA from benefiting from the sale of Chevron oil; instead, the money will go to a humanitarian fund. The deal also blocks Chevron from helping Venezuela start new oil fields. The license expires in six months, but the U.S. will renew it monthly once that six-month period ends; however, the administration reserved the right to rescind the license at any time.
“This action reflects longstanding U.S. policy to provide targeted sanctions relief based on concrete steps that alleviate the suffering of the Venezuelan people and support the restoration of democracy,” read a statement from the U.S. Treasury Department.
The catch is that there’s no guarantee that the Venezuelan regime will go for the license since it contains so many restrictions.
“There is not a big incentive in the short term,” said Francisco Monaldi of Rice University’s Baker Institute for Public Policy. “We’ll see how Maduro’s government reacts to it and how many cargoes will be assigned to Chevron after.”
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All of this comes on the same day that representatives of the Venezuelan government and opposition leaders conducted talks in Mexico City to discuss a United Nations effort to benefit the Venezuelan people — something that wouldn’t be necessary if Marxists weren’t in charge of the country. The Mexico City talks could also determine how the Venezuelan regime responds to the license from the U.S. government.
It’s yet another example of the Biden administration’s energy policies benefiting other nations, particularly those that are hostile to the U.S., at the expense of America’s domestic production.