Venezuela has been hit with sanctions by the United States, following President Nicolás Maduro’s crackdown on the opposition. The move comes six months after Washington relaxed sanctions against the authoritarian leader, who had announced plans for free presidential elections. However, an agreement reached in October between Maduro and the US-backed opposition in Barbados for upcoming elections turned out to be empty as key opposition figures were barred from running.
The American oil company Chevron had returned to Venezuela following the easing of sanctions, and a group of Americans held in the country were released. Despite this, Venezuela has seen its oil production decline due to mismanagement, lack of maintenance, and US sanctions. Major companies like Shell and Repsol have engaged in deals with Maduro’s government and the state oil company PDVSA, despite the challenges they face.
Ten years ago, Venezuela produced 2.9 million barrels of oil per day, but as of 2020, production had dropped to 400,000 barrels per day. With the reintroduction of sanctions on Venezuela’s oil sector, production is expected to take a further hit. The US government has left the deal between Chevron and PDVSA untouched for now but has warned that it will not hesitate to take further action if necessary.