US Moves to Further Ease Sanctions on Venezuela’s Oil Industry

The United States has taken additional steps to ease sanctions on Venezuela’s oil sector, signaling a cautious but notable shift in its policy toward the South American nation’s energy industry.

On Tuesday, the US Treasury Department issued a series of licenses authorizing specific transactions involving Venezuela’s government and its state-owned oil company, Petróleos de Venezuela, S.A. (PDVSA). The move is expected to broaden opportunities for American companies seeking to re-engage in Venezuela’s vast but long-restricted oil market.

Under one of the newly issued licenses, certain transactions related to oil and gas exploration, development, and production are now permitted. This includes the provision of goods, technology, and software necessary to support energy operations. The measure could allow US firms to supply equipment and technical services essential to reviving Venezuela’s aging oil infrastructure.

A second license authorizes specific transactions linked to port and airport operations, potentially facilitating logistical activities tied to the energy sector. A third document permits defined activities involving oil of Venezuelan origin, further clarifying the scope of allowed engagement under the sanctions framework.

Venezuela has been subject to sweeping US sanctions since 2019, aimed at restricting revenue flows to its government. Despite the sanctions, the country remains home to nearly one-fifth of the world’s proven oil reserves — the largest globally. Before the sanctions regime tightened, Venezuela was once among the top foreign suppliers of crude oil to the United States.

The easing of certain restrictions does not amount to a full removal of sanctions. Instead, it reflects a calibrated approach that allows limited, regulated interaction in the energy sector while broader sanctions remain in place.

Energy analysts suggest the new measures could gradually open space for investment and technical cooperation, though significant challenges remain. Years of underinvestment, infrastructure deterioration, and financial constraints have sharply reduced Venezuela’s production capacity.

The latest development underscores the strategic importance of Venezuela’s oil reserves in a shifting global energy landscape, where supply diversification and geopolitical considerations continue to shape policy decisions in Washington and beyond.