Trump Considers Letting Chevron Keep Pumping Venezuelan Oil

Summary

WSJ What’s News: Trump Considers Letting Chevron Keep Pumping Venezuelan Oil
Release Date: March 20, 2025

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1. Trump Administration's Stance on Chevron's Venezuelan Operations

Overview:
In a significant policy shift, President Donald Trump is contemplating extending Chevron's license to continue pumping oil in Venezuela. This consideration marks a reversal of his recent order for Chevron to wind down its Venezuelan operations by the following month. The decision underscores the administration's broader strategy to maintain robust energy supplies for the United States.

Key Developments:

• Meeting with Chevron Executives: During a Wednesday meeting at the White House, President Trump discussed the potential extension with Chevron CEO Mike Wirth and other oil industry leaders. Sources familiar with the discussion indicate an openness to revisiting the administration's previous stance.

• Opposition from Hardliners: The plan faces opposition from prominent Trump administration figures such as Secretary of State Marco Rubio and National Security Advisor Mike Waltz, who have been vocal critics of Chevron's involvement in Venezuela.

Notable Quote:
Jenny Strasberg, Wall Street Journal correspondent, highlights the debate:
"Trump expressed openness to reversing his recent decision to order the company to wind down its Venezuela operation next month..." (01:05)

Implications:
Extending Chevron's operations in Venezuela could deter other international companies from establishing a presence in the region, thereby consolidating Chevron's dominance. This move aligns with the administration's focus on ensuring a steady energy supply amidst global uncertainties.

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2. Attorney General Pam Bondi Targets Vandalism Against Tesla

Overview:
Attorney General Pam Bondi has intensified efforts to classify and prosecute vandalism against Tesla as domestic terrorism. This initiative responds to a series of attacks on Tesla facilities, including dealerships and charging stations, which the administration views as politically motivated.

Key Developments:

• Statements to Fox News: Bondi asserted that the attacks are organized and not isolated incidents, emphasizing their political motivations linked to Elon Musk's policies aimed at reducing government jobs and spending.

• Legal Ramifications: The Justice Department under Bondi plans to seek federal charges for perpetrators, which could entail long, mandatory minimum prison sentences.

Notable Quotes:
Pam Bondi emphasized the seriousness of the situation:
"We believe these are organized. These are not individuals out there throughout the country doing this on their own." (04:39)
She further warned:
"We will find you." (04:39)

Implications:
Labeling these acts as domestic terrorism elevates their severity, potentially leading to harsher penalties for offenders. This move also reflects the administration's broader efforts to safeguard key industries and infrastructure against politically motivated disruptions.

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3. US Crackdown on Corporate Diversity, Equity, and Inclusion (DEI) Policies Impacts European Companies

Overview:
The Trump administration's initiative to eliminate Diversity, Equity, and Inclusion (DEI) efforts within the US government is extending its reach into the private sector, influencing global business practices. This policy shift is affecting European companies with significant US operations, compelling them to navigate the complexities of divergent DEI regulations.

Key Developments:

• Government Scrutiny: The Attorney General has been instructed to identify and report companies in the private sector that promote DEI practices deemed illegal and discriminatory under the new administration guidelines.

• Impact on European Businesses: Companies with global operations, such as Germany-based Aldi and Spain-based Santander, are modifying their DEI policies to comply with US regulations while maintaining their commitments in European markets.

  • Aldi: Removed references to diversity and inclusion from its US website while retaining such language in European operations.
    Example Action: "Earlier this year they changed their U.S. website to eliminate reference to diversity and inclusion." (07:29)

  • Santander: Adjusted its performance metrics for senior employees in regions with differing DEI policies, ensuring that bonuses are not influenced by women promotion metrics in the US, while maintaining such incentives elsewhere.
    Example Action: "Bonuses will continue to be influenced outside the US in part by their ability to promote women into senior executive positions." (07:29)

Notable Insights:
Ben Dummett, Wall Street Journal reporter, explains the broader context:
"It's kind of a reversal of what's known as the Brussels effect... major decisions by huge economic blocs, whether it's Europe or the US, are pivoting away from what has been going on for some time..." (08:56)

Implications:
This policy divergence creates a challenging environment for multinational corporations, necessitating localized strategies to balance compliance with US regulations and adherence to European values supporting DEI. The shift may lead to increased operational complexities and potential backlash from stakeholders who favor DEI initiatives.

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4. Additional Market and Business News

Greenpeace vs. Energy Transfer Lawsuit:
Greenpeace has been ordered to pay over $600 million to Energy Transfer, the company behind the Dakota Access Pipeline. The lawsuit arises from accusations of trespassing and causing property damage during 2016 protests. Greenpeace intends to appeal the decision.

US Agency for International Development Overhaul:
A memo suggests renaming and restructuring the agency to enhance national security and counter adversaries like China. The proposed changes include scrapping low-return programs and aligning remaining initiatives with American strategic interests. However, a federal judge's ruling declaring the dismantling of US Aid unconstitutional could affect these plans.

SoftBank's Acquisition of Ampere Computing:
SoftBank has agreed to purchase US chip designer Ampere Computing Holdings for $6.5 billion, reinforcing its commitment to AI innovation in the United States.

Kraken's Potential Acquisition of NinjaTrader:
Crypto exchange Kraken is nearing a $1.5 billion deal to acquire futures trading platform NinjaTrader, aiming to expand its user base and diversify into additional asset classes.

Central Banking Updates:

• People's Bank of China: Maintains benchmark lending rates, keeping the one-year loan prime rate at 3.1% and the five-year rate at 3.6%, following the Federal Reserve's decision to hold rates steady.
• Bank of England: Expected to keep its key interest rate unchanged at 4.5% in the upcoming rate decision.

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Conclusion

The March 20, 2025 episode of WSJ What’s News highlights significant shifts in US energy policy, legal actions against corporate disruptions, and the global ripple effects of domestic policies on international businesses. President Trump's potential extension of Chevron's Venezuelan operations reflects a strategic move to secure US energy needs, while Attorney General Bondi's tough stance on Tesla-related vandalism underscores the administration's commitment to protecting key industries. Additionally, the US crackdown on DEI policies is reshaping global corporate strategies, particularly for European companies operating in the American market. These developments, alongside other notable business news, illustrate the dynamic interplay between government policies and global economic activities.

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Produced by Daniel Bach and Kate Bullivant with supervising producer Sandra Kilhoff. For more insights, stay tuned to WSJ What’s News.

Transcript

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[Ben Dummett]

There.

[Luke Vargas]

Chevron makes headway in lobbying the White House to keep pumping oil in Venezuela. Plus, Attorney General Pam Bondi pledges federal prosecutions against vandals targeting Tesla, calling attacks on vehicles and company property domestic terrorism. And we'll look at how efforts to crack down on corporate DEI in the US Are rippling across the Atlantic.

[Ben Dummett]

Whereas Europeans previously dictated what US Companies had to fall in terms of policies in order to sell goods into Europe, that's being reversed now to a degree.

[Luke Vargas]

It's Thursday, March 20th. I'm Luke Vargas for the Wall Street Journal, and here is the AM edition of what's news, the top headlines and business stories moving your world. Today, we are exclusively reporting that President Trump is considering a plan to extend Chevron's license to pump oil in Venezuela and make it harder for other countries to get a foothold there. Trump expressed openness to revolve, reversing his recent decision to order the company to wind down its Venezuela operation next month during a Wednesday meeting at the White House with Chevron CEO Mike Wirth and other oil industry executives, according to people familiar with the discussion. Journal correspondent Jenny Strasberg says that comes after months of counter arguments from hardline Venezuela critics like Secretary of State Marco Rubio and National Security Advisor Mike Waltz.

[Pam Bondi]

What we see here is Chevron making some headway in its argument that if the US Were to impose tariffs or other financial penalties on countries buying oil from venezuela, not the US but China, etc. Then that could fortify Chevron and allow that oil to continue flowing to the US which of course is very much a part of this administration's talking points to keep oil flowing, keep America supplied with the energy it needs.

[Luke Vargas]

The White House didn't respond to requests for comment. Greenpeace has been ordered to pay more than $600 million to Energy Transfer, the company behind the Dakota Access pipeline. The lawsuit centered around months long protests back in 2016 in which Greenpeace, Native American tribal groups and other activists camped out to block construction of the pipeline that transfers crude oil from North Dakota to Illinois. Energy Transfer alleged that the environmental activist group, as well as its international and fund entities trespassed and caused damages on its property and published false statements about the pipeline. Greenpeace has denied the allegations, saying it would appeal the judgment to the North Dakota Supreme Court. The U.S. agency for International Development could soon get a major overhaul, according to a memo viewed by the Journal. The agency, which had been dismantled by Elon Musk's Department of Government Efficiency, would be renamed the U.S. agency for International Humanitarian Assistance and fall under the control of the State Department with a mandate to help enhance national security and counter adversaries like China. The memo stated that expensive programs that didn't provide strong returns to taxpayers should be scrapped and that those that remain shouldn't be solely philanthropic, but should advance American security, strategic and commercial interests. It's unclear whether a federal judge's ruling this week that Doge's dismantling of US Aid was unconstitutional would impact the new plans. A state the department spokesperson said that any changes to the structure of US Aid will be done in consultation with Congress and will be subject to congressional notification. And the Trump administration is ratcheting up its campaign to label attacks against Tesla property as domestic terrorism. Speaking to Fox News last night, Attorney General Pam Bondi described the string of vandalism and arson attacks on Tesla dealerships and charging stations as politically motivated against Elon Musk because of his work to cut government jobs and spending.

[Pam Bondi]

We believe these are organized. These are not individuals out there throughout the country doing this on their own. They're targeting Tesla owners, they're targeting Tesla dealerships, they're targeting Elon Musk, who is out there trying to save our country and it will not be tolerated. We are coming after you. We will find you.

[Luke Vargas]

Bondi added that the Justice Department would pursue federal charges that can carry long, mandatory minimum prison sentences. Coming up, the Trump administration's DEI crackdown goes global. We'll look at how European businesses are shaking up their diversity policies and recap Other news moving markets after the break.

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[Luke Vargas]

Shortly after taking office, President Trump ordered an end to diversity, equity and inclusion efforts across the US Government. But crucially, the push to st about DEI doesn't just extend to the public sector. And as Journal reporter Ben Dummett is here to discuss, nor does it end in the U.S. ben, the U.S. government is expected to scrutinize a lot more companies in the private sector over DEI practices. Tell us what you've learned.

[Ben Dummett]

Yeah, that's right. In May, the Attorney General has been instructed to issue a report that will identify companies in the private sector that they deem have promoted practices that they see as illegal and discriminatory through the DEI policies. So that's created, you know, essentially we've talked to some lawyers and they said that that's triggered an avalanche of inquiries from companies just trying to figure out, you know, how to navigate this problem and avoid being on the list. This story focuses on European companies that have global operations, that is big operations in the US and so what's happening is they don't want to be in a situation where they've implemented DEI policies that find themselves running afoul of changes in the US rules and that resulting in a sort of backlash from employees or customers in Europe who are supportive of DEI and by the same token, customers in the US that may take a different view.

[Luke Vargas]

It sounds like a tricky one to thread. How are some big European businesses trying to navigate that?

[Ben Dummett]

Well, they're doing a couple of things. In the case of Aldi, for example, which is a big discount grocer based in Germany but has large operations in the U.S. particularly in the southern U.S. earlier this year they changed their U.S. website to eliminate reference to diversity and inclusion. But in their websites in parts of Europe where they operate, diversity, inclusion is still promoted as something important. And Santander, for example, a big Spanish based bank, similarly, if you look at their latest annual report, they are saying now that senior employees that work for Santander in countries, they don't specify the US but they say countries that have different policies regarding issues like dei. Those managers, their bonuses won't be determined based on the number of women they promote into senior managerial or executive roles, whereas bonuses will continue to be influenced outside the US in part by their ability to promote women into senior executive positions.

[Luke Vargas]

Let me just quickly say that representatives for Aldi and a Santander spokesman declined to comment on your reporting. But Ben, it's really fascinating stuff there. We've previously talked about ex U s as a term in the world of investing, but it sounds like that is now an HR term as well. Getting the US Basically carved out of some global policies, what do you make.

[Ben Dummett]

Of that what's going on with the US and how it's impacting Europe. You know, it's kind of reversal of what's known as the Brussels effect with policies introduced by Europe that because of the size of the European marketplace, which is comprised of about 450 million people, their policies for a long time heavily influenced the way companies, for example, in the US did things in order to make sure they abided by the rules of Europe in order to, you know, sell their goods into this region. So it just basically speaks to the fact that we live in a sort of a global marketplace and as a result, major decisions by huge economic blocs, whether it's Europe or the US that really pivot away from what has been going on for some time is going to put companies on edge, is going to create a lot of confusion, is going to create diverging policies. And as a result, it's going to take time to figure out what's right, what's wrong.

[Luke Vargas]

Ben Dummett writes about dealmaking from the Wall Street Journal's London bureau. Ben, thank you so much for joining us and bringing us this story.

[Ben Dummett]

Thanks. I appreciate it.

[Luke Vargas]

And in market news today, Softbank has inked a deal to buy US chip designer Ampere Computing holdings for $6.5 billion. CEO Masayoshi San said the deal de SoftBank's commitment to AI innovation in the United States, which comes as the Japanese investment firm is starting a giant data center project in the US The Ampere acquisition is expected to be completed later this year, subject to regulatory approvals. We are exclusively reporting that crypto exchange Kraken is nearing a $1.5 billion deal to buy the futures trading platform NinjaTrader. People familiar with the matter say the deal could be announced as soon as this morning and is aimed at helping Kraken to expand user base and move into other asset classes. And the People's bank of China has kept benchmark lending rates unchanged following the Federal Reserve in holding rates steady. China's one year loan prime rate is at 3.1% and the five year rate remains at 3.6%. The bank of England is also widely expected to keep its key interest rate steady at 4.5% when it issues its latest rate decision at 8am Eastern. And that's it for what's news for this Thursday morning. Today's show was produced by Daniel Bach and Kate Bullivant with supervising producer Sandra Kilhoff. And I'm Luke Vargas for the Wall Street Journal. We will be back tonight with a new show. Until then, thanks for listening.