The Wall Street Journal reports that the administration of President Joe Biden is planning on giving Chevron Corp. a license to pump oil in Venezuela.
There, however, are several strings attached.
The Journal reports:
Granting the new license is contingent on the Venezuelan government and its political opponents’ announcement, expected Saturday, to implement a $3 billion humanitarian program using Venezuelan funds unfrozen by the U.S. as well as an agreement to resume talks in Mexico City next month on resolving the country’s political crisis through free and fair elections, people familiar with the matter said. The talks would quickly set in motion U.S. authorization for Chevron’s return to Venezuela’s oil fields, according to the people.
The Journal’s report does indicate that all parties are on board.
A different approach
The Daily Caller points out that this is more evidence that the Biden administration is looking to move away from the approach to Venezuela that was taken by former President Donald Trump.
Trump and his administration employed a “maximum pressure” strategy on Venezuela in order to try to put a stop to the socialist government’s corruption. Sanctions were a central part of this strategy.
The Biden administration, in contrast, has clearly been looking to find ways to ease those sanctions, as it is doing here with the conditions that it has placed on the agreement.
Many have doubts about Venezuela’s sincerity, here. The question will be whether the country will adhere to any agreement reached. And, if it doesn’t, the question will be whether the Biden administration is bold enough to reinstate sanctions. We’ll see.
Searching for answers in the wrong places
One of the benefits that the Biden administration is clearly looking to get from the deal is oil.
Under Biden’s leadership, America has been facing an energy crisis, as Biden and the Democrats look to move towards green energy. Oil and gas prices have been soaring across the country.
Biden has attempted to address this problem by seeking foreign sources of oil, including from OPEC and now Venezuela. Biden, however, has refused to do the one thing that critics maintain would help the most, namely, allowing more domestic drilling.
The Journal reports that “some analysts have said Venezuela’s oil production is likely to hit a ceiling of about 1 million barrels a day in the medium term.”