US Eases Venezuela Oil Sanctions, Opening Market to Investors

The United States has eased sanctions on Venezuela’s oil industry, allowing American companies to operate more freely after Venezuela opened its oil sector to private investment.

On Thursday, the US Treasury Department issued a general license permitting US energy firms to engage in activities like refining, exporting, selling, storing, and transporting Venezuelan oil. This move comes just hours after Venezuelan lawmakers voted to remove strict state controls over the oil industry.

Venezuela’s acting president, Delcy Rodriguez, called the reforms a “historical leap” and emphasized that foreign investment is essential to revive the country’s struggling economy. Rodriguez also confirmed a $300 million US crude sale had been used to support Venezuela’s currency, the bolivar.

The reform marks a significant shift from Hugo Chavez’s 2006 law, which forced foreign investors to give the state majority control in oil ventures. Now, private players can explore new fields, operate independently, and benefit from lower taxes and royalties.

Jorge Rodriguez, head of parliament and Delcy’s brother, said the law will help Venezuela recover from years of US sanctions and economic hardship.

President Trump has expressed strong support for Rodriguez and encouraged US oil companies to invest in Venezuela. Chevron remains the only US firm currently operating in the country under a special sanctions exemption, while Exxon Mobil and ConocoPhillips left in 2007 after refusing to give the state majority control.

The changes are expected to attract foreign investment, improve oil production, and support Venezuela’s economic recovery. The country, which holds about a fifth of the world’s oil reserves, produced 1.2 million barrels per day in 2025, up from 300,000 barrels in 2020, but still below the 3 million barrels daily produced in the early 2000s.

Analysts say the reforms dismantle Chavez’s oil model while still allowing the state some control over contracts. The government hopes the influx of foreign capital will be used to develop new fields and rebuild infrastructure in underdeveloped areas.

Workers and citizens have expressed optimism, seeing the reforms as a step toward economic recovery and national dignity.