Jesús Daniel Romero and William Acosta for Power & Money and FinGurú
A recent hearing in the United States Congress has highlighted the commercial ties between Chevron and the Nicolás Maduro regime in Venezuela. This event, organized by Republican representative from Florida, María Elvira Salazar, aims to analyze the business licenses held by the American company and their effect in the political and economic context of the South American country.
Since Maduro took power, his government has relied on international assistance, particularly from nations like China, Russia, and Iran. However, agreements with Chevron have provided a vital source of revenue, allowing the regime to stay afloat despite global isolation. The Biden administration, aware of this situation, is considering suspending these licenses to force dialogue between the regime and the opposition.
During the hearing, representatives from the State Department and the U.S. Agency for International Development (USAID) expressed their views on how Chevron's operations may be strengthening a government accused of human rights violations and electoral fraud. The company acts as an economic support that, while providing vital resources, also allows Maduro to escalate repression against the population. Oil revenues facilitate the financing of a repressive apparatus that stifles citizens' freedoms.
The Maduro regime uses the money it receives from oil sales to Chevron for various purposes. According to the U.S. Department of the Treasury, these licenses are necessary for a wide range of energy activities including investment, import and export, gas and oil exploration, and contracting and payments. But in reality, a significant portion is allocated to financing the repressive apparatus, ensuring control over the opposition and dissent. This includes the purchase of military equipment and the funding of intelligence operations. Additionally, although the government faces a severe economic crisis, resources are used for subsidies and social programs that seek to maintain some popular support, although these efforts are generally insufficient to meet the basic needs of the population.
Another important aspect is the payment of external debts. Oil revenues are used to meet debt commitments, especially with countries that have supported the regime, such as China and Russia. Furthermore, Venezuela has a significant external debt with the United States, estimated in the billions of dollars, largely due to loans and obligations from the state oil company Petróleos de Venezuela Sociedad Anónima (PDVSA). This situation further complicates the country's diplomatic and economic relations, as the default on these debts has led to additional sanctions and restrictions by the United States. Likewise, the money is used to try to stabilize the economy, facilitating imports of food and medicine, although shortages remain a critical problem.
The production of 200,000 barrels of oil per day by Chevron constitutes a considerable percentage of Venezuela's exports and government revenues. This steady flow of resources not only supports the regime but also allows it to increase its control over society. Therefore, the possible suspension of the license could trigger serious economic consequences, although it could also be a turning point towards a necessary political change.
Chevron claims that its presence in the country seeks to promote economic development and job creation, distancing itself from local politics. However, this assertion becomes complicated when considering that its activity contributes to the financial stability of a government that suppresses its opponents and restricts fundamental freedoms.
The strategy of promoting and expanding 21st Century Chavista Socialism relies entirely on the financing of hundreds of billions of dollars. Today, Venezuela is the only free oil supplier to Cuba and other Caribbean countries, for instance. While the United States supports oil companies in Venezuela with licenses and concessions for their operations, Venezuela maintains its support by providing free oil to Cuba. It is very similar to those times when Chávez supplied free fuel to thousands of low-income citizens in New York. If a dependence is created, the supplier is the one who sets the rules.
In this context, the arrival of figures such as elected president Edmundo González Urrutia and María Corina Machado becomes particularly relevant. Both have advocated for the restoration of democracy in Venezuela and emphasized the need to dismantle the Maduro regime. González Urrutia has proposed a comprehensive approach that includes promoting an inclusive dialogue and recovering democratic institutions, while Machado has been a strong voice in the fight for human rights and social justice. Their positions reflect a collective yearning for change that allows the Venezuelan population to regain their freedoms and dignity. We cannot forget that the Venezuelan opposition has played with the established rules under negotiations conducted in Mexico, Qatar, and Barbados. All under negotiations supervised by the U.S. government.
In summary, Chevron's situation in Venezuela highlights the complex interplay between business, political, and human rights realms. Strategically speaking, U.S. interest in Venezuela's oil production goes far beyond the pockets of private industry. On one hand, oil gifts maintain a relative economic and social stability and prevent strategic competitors like Russia and China from potentially filling a vacuum created by the United States should they exit. The decision made by the U.S. Congress will not only impact the company itself but will also have significant implications for the fight for democracy and social justice in a country facing a severe crisis. The international community is watching how this situation will unfold, in which economic interests must be carefully balanced with support for democracy and respect for human rights, especially in a context where an oppressive regime is sustained through those same resources. Collaboration between leaders like González Urrutia and Machado could be crucial in charting a path towards a more hopeful future for Venezuela.
Jesús Daniel Romero enlisted in the United States Navy in 1984 and was designated as a Naval Intelligence Officer. He also served as an intelligence operations specialist in the civil service of the army. He was a deckhand on a nuclear missile cruiser. He later had the opportunity to become a navigator and, after 8 years, became an officer.
He spent five years on that cruiser: “We pursued Soviet fleets, operated in the seas of Cuba, in the Arctic, in the Mediterranean, in the Atlantic, and in the Black Sea.”
Romero became an officer through the Navy's Enlisted Program, graduated with honors from Norfolk State University, and received a degree in Political Science. Thanks to his good academic performance, he was able to choose a career in intelligence. He studied aviation and then entered intelligence school. He was assigned to an A-6 Intruder squadron, a tactical bomber operating from an aircraft carrier USS America, aboard which he went to Bosnia, Iraq, and Sudan.
He later commanded an intelligence unit in Panama, working for the Defense Intelligence Agency (DIA), and oversaw analysts of tactical teams in Central and South America, and Mexico. He worked at an intelligence center in Hawaii as a China watch officer, monitoring the military activities of the Asian country.
After retiring from the Navy, Romero worked as a defense contractor for the North American Division of British Aerospace Systems (BAE) in Washington, D.C. and also for Booz Allen Hamilton in Miami.
William L. Acosta is the founder and CEO of Equalizer Private Investigations & Security Services Inc. An authorized investigation agency in NYS, FL. with offices and affiliates worldwide.
Equalizer has offices and branches in the United States in New York, Florida, California, and Latin America. Since 1999. Equalizer's investigations have successfully closed cases ranging from Narcotics, Homicides, Missing Persons, and other crimes.
He has been involved in the criminal defense of State and Federal Criminal Defense cases ranging from Homicide, Narcotics, RICO, Money Laundering, Conspiracy, and other federal and state charges, and coordinated investigations in the U.S. and other countries around the world.
Mr. Acosta specializes in international and multi-jurisdictional investigations and has conducted investigations in recent years in Germany, Italy, Portugal, Spain, France, England, Mexico, Guatemala, El Salvador, Honduras, Panama, Colombia, Venezuela, Argentina, Bolivia, Ecuador, Peru, Brazil, Puerto Rico, Dominican Republic, among other locations.
He has led or coordinated investigations related to international drug trafficking, money laundering, and homicides, and was an instructor and international speaker on various investigative topics.
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