US Sanctions Against Venezuela Are Crushing Trinidad and Tobago's Energy Future

U.S. sanctions on Venezuela disrupt Trinidad and Tobago’s energy sector, risking Caribbean stability. A call for diplomacy to prioritize regional prosperity.

US Sanctions Against Venezuela Are Crushing Trinidad and Tobago's Energy Future FactArrow

Published: April 18, 2025

Written by Matthew Sanchez

A Region at a Crossroads

Trinidad and Tobago, a vibrant Caribbean nation, has long anchored the region’s energy hopes. Its natural gas fields and liquefied natural gas plants power not just its own economy but also the dreams of smaller island nations. Yet, in early 2025, a sudden policy shift from Washington threw this delicate balance into chaos. The U.S., under President Trump, revoked licenses that allowed Trinidad and Tobago to develop vital gas projects with Venezuela, leaving the country scrambling. This isn’t just a bureaucratic hiccup; it’s a blow to a nation striving to secure its future.

The revoked licenses, tied to the Dragon and Manakin-Cocuina gas fields, were more than contracts. They were lifelines, promising 200 million cubic feet of gas per day by 2027 to fuel Trinidad’s industries and stabilize regional energy markets. Now, with those projects stalled, the ripple effects threaten to deepen energy insecurity across the Caribbean, where nations lean on Trinidad as a hub for processed fuels. The U.S. insists its sanctions target Venezuela’s Maduro regime, not Trinidad. But the collateral damage tells a different story.

This moment feels like a betrayal to many in the Caribbean, where resilience is a way of life. The U.S. has long championed democracy and prosperity in the region, yet its actions now undermine both. Secretary of State Marco Rubio’s recent call with Trinidad’s Prime Minister Stuart Young, while diplomatic, offered little beyond promises to ‘work closely.’ For a region already battered by climate change and economic fragility, vague assurances aren’t enough.

What’s at stake is more than gas fields. It’s the principle that global powers must consider the human cost of their policies. Trinidad and Tobago’s energy sector isn’t just about profit; it’s about jobs, electricity, and the stability of a region that deserves better than to be caught in geopolitical crossfire.

The Human Toll of Sanctions

Sanctions, often framed as precise tools to punish authoritarian regimes, rarely hit their intended targets alone. In Trinidad and Tobago, the U.S. decision to tighten the screws on Venezuela has left workers, families, and entire communities in limbo. The Dragon field, once a beacon of economic promise, now symbolizes uncertainty. Without it, Trinidad’s LNG and petrochemical plants face dwindling supplies, threatening thousands of jobs and raising energy costs for ordinary citizens.

The broader Caribbean feels the strain too. Nations like Barbados and Jamaica, reliant on Trinidad’s energy exports, now face higher costs and potential shortages. This isn’t abstract policy; it’s the price of groceries, the reliability of electricity, and the ability to keep schools and hospitals running. Historical data backs this up: U.S. sanctions on Venezuela since the 2000s have consistently disrupted Caribbean energy flows, driving up costs and stifling growth. The pattern is clear, and the consequences are human.

Advocates for tougher sanctions argue they’re necessary to weaken Maduro’s grip on power. But this logic falters when you consider the evidence. The ‘maximum pressure’ campaign from 2019 to 2022 didn’t topple Maduro; it deepened Venezuela’s humanitarian crisis and fueled migration that strained the entire hemisphere. Now, the same approach risks destabilizing allies like Trinidad and Tobago, whose stability is vital to U.S. interests in countering drug trafficking and fostering regional democracy.

The U.S. claims it supports Trinidad’s energy security, pointing to Rubio’s assurances and past cooperation. But actions speak louder than words. Revoking licenses without clear alternatives isn’t support; it’s indifference to the real-world fallout for Caribbean people.

A Path Forward Rooted in Justice

Trinidad and Tobago isn’t standing still. Under Prime Minister Young’s leadership, the country is diversifying its energy mix, aiming for 30% renewable energy by 2030. Projects like the 92.2 MW Brechin Castle solar plant and a bold green hydrogen strategy show a nation determined to adapt. But renewables take time, and sanctions have kneecapped the gas projects needed to bridge the gap. The U.S. could be a partner in this transition, not an obstacle.

Diplomacy offers a way out. The U.S. must restore licenses for Trinidad’s cross-border projects and engage in good-faith negotiations to balance its Venezuela policy with Caribbean needs. Historical precedent exists: selective waivers in the past allowed limited energy cooperation without empowering Maduro. Expanding these exemptions, paired with technical aid for Trinidad’s renewable push, would show a commitment to regional prosperity over punitive posturing.

Skeptics might argue that easing sanctions risks legitimizing Maduro’s regime. But this overlooks the bigger picture. Supporting Trinidad’s energy sector strengthens a democratic ally, bolsters regional security, and counters Chinese and Russian influence in the Caribbean. The U.S. has the tools—through SOUTHCOM’s security partnerships and trade agreements—to build a coalition that uplifts the region while isolating Maduro. It’s a strategy grounded in pragmatism and moral clarity.

The Caribbean’s future hinges on decisions made now. Trinidad and Tobago’s energy ambitions, from gas to green hydrogen, align with global climate goals and regional stability. By prioritizing sanctions over partnership, the U.S. risks alienating a region that has long looked to it for leadership. It’s time to choose cooperation over confrontation, to see Caribbean nations as allies, not collateral damage.

A Call to Action

The Caribbean deserves a future where energy security fuels prosperity, not uncertainty. Trinidad and Tobago’s plight is a test of U.S. values: will it stand with its neighbors or let them bear the cost of its geopolitical battles? The answer lies in bold, principled action. Restoring licenses, investing in renewables, and deepening diplomatic ties can rebuild trust and secure the region’s future.

This isn’t just about one nation or one policy. It’s about a vision for a Caribbean where people thrive, where democracy flourishes, and where global powers act with accountability. The U.S. has a chance to lead, to show that its commitment to the region is more than rhetoric. For Trinidad and Tobago, for the Caribbean, and for the sake of shared humanity, it’s time to act.