Maduro Sanctions Backfire, Putting Trinidad's Energy Future in Peril

U.S. sanctions on Venezuela threaten Caribbean energy security, but diplomacy with Trinidad and Tobago offers a path to balance strength and stability.

Maduro Sanctions Backfire, Putting Trinidad's Energy Future in Peril BreakingCentral

Published: April 18, 2025

Written by Zoe Walker

A Caribbean Crisis in the Making

The Caribbean stands at a crossroads, and the United States holds the map. Trinidad and Tobago, a linchpin of regional energy security, faces an uncertain future as U.S. sanctions on Venezuela’s Maduro regime tighten. Secretary of State Marco Rubio’s recent call with Prime Minister Stuart Young underscored a truth: America’s commitment to this vital ally remains unshaken. Yet, the revocation of licenses for critical gas projects like Dragon and Manakin-Cocuina has sent ripples of concern across the region. These fields were set to deliver 200 million cubic feet of gas daily by 2027, fueling Trinidad’s economy and stabilizing energy supplies for Caribbean neighbors.

This isn’t just about pipelines or profits. It’s about sovereignty, stability, and the ripple effects of U.S. foreign policy. The sanctions, aimed at strangling Maduro’s corrupt regime, are a necessary stand against tyranny. But they’ve inadvertently put a chokehold on Trinidad’s energy sector, threatening jobs, industries, and regional cohesion. The U.S. must navigate this tightrope with precision, ensuring that our principled stance against Venezuela doesn’t destabilize a loyal partner.

Rubio’s conversation with Young was a promising step. Both leaders agreed to explore solutions that uphold U.S. objectives while safeguarding Trinidad’s energy needs. This isn’t appeasement; it’s pragmatic leadership. The Caribbean’s stability hinges on Trinidad’s ability to power its LNG plants and petrochemical industries, which supply not just its own people but also nations across the region. If we falter, we risk ceding influence to adversaries like China or Russia, who are all too eager to fill the void.

The stakes couldn’t be higher. Trinidad’s energy sector isn’t just an economic engine; it’s a bulwark against the chaos that Maduro’s mismanagement has unleashed. The U.S. has a chance to strengthen its hand in the Western Hemisphere, but only if we act with foresight and resolve.

Sanctions With a Purpose, but at What Cost?

Let’s be clear: sanctions on Venezuela are a moral and strategic necessity. Maduro’s regime has plundered its people, rigged elections, and empowered criminal networks like Tren de Aragua, which threaten the entire hemisphere. President Trump’s hardline approach, including a potential 25% tariff on goods from countries importing Venezuelan oil, sends an unmistakable message: the U.S. will not subsidize tyranny. This policy builds on decades of efforts to isolate Caracas, from Chávez’s anti-American rants to Maduro’s sham elections.

Yet, the collateral damage is real. Trinidad and Tobago, a steadfast U.S. ally, relies on cross-border gas projects to offset its declining reserves. The Dragon field, once a beacon of hope, now sits in limbo, its fate tied to U.S. policy shifts. Historical waivers allowed Trinidad to tap Venezuelan gas, but their revocation in 2025 has left the country scrambling. The LNG and petrochemical industries, which employ thousands and drive regional trade, face an existential threat. Smaller Caribbean nations, dependent on Trinidad’s processed fuels, feel the pinch too.

Some argue we should double down, that any concession risks legitimizing Maduro. This view, while principled, ignores the broader picture. Trinidad’s energy collapse could spark economic instability, fuel migration, and weaken a region already battered by natural disasters and crime. The U.S. Southern Command, through exercises like Tradewinds 2025 hosted by Trinidad, has invested heavily in Caribbean security. Undermining that progress by starving Trinidad’s energy sector would be a self-inflicted wound.

The answer isn’t to soften our stance on Venezuela but to refine it. Rubio’s pledge to work closely with Young shows the U.S. can thread the needle, supporting Trinidad’s energy initiatives while keeping the pressure on Maduro. Diplomacy here isn’t weakness; it’s strength tempered by wisdom.

Trinidad’s Vision and America’s Role

Trinidad and Tobago isn’t sitting idly by. Prime Minister Young’s government has charted an ambitious path, balancing traditional oil and gas with a bold push into renewables and green hydrogen. By 2030, the country aims for 30% renewable energy, with projects like the 92.2 MW Brechin Castle solar plant already underway. Its 2022 Green Hydrogen strategy could make Trinidad a global leader in green ammonia exports by 2065. These aren’t pipe dreams; they’re backed by international recognition for transparency and decarbonization.

The U.S. has a vested interest in this vision. Trinidad’s energy leadership stabilizes the Caribbean, reduces reliance on hostile regimes, and aligns with America’s push for cleaner energy. Bilateral talks in March 2025 reaffirmed U.S. support for Trinidad’s modernization, from technical assistance to diplomatic backing. But sanctions have thrown a wrench into these plans, stalling projects that could secure Trinidad’s role as a regional energy hub.

Opponents of compromise might claim that Trinidad should simply pivot away from Venezuelan gas. That’s easier said than done. Developing new fields like Manatee or Calypso takes years and billions in investment. Renewables, while promising, can’t yet replace the immediate shortfall. Forcing Trinidad to choose between U.S. loyalty and economic survival is a false dichotomy. The U.S. can support both its sanctions policy and Trinidad’s energy future by reinstating targeted waivers or fast-tracking alternative investments.

A Path Forward for the Hemisphere

The Caribbean’s future depends on a strong U.S.-Trinidad partnership. Regional security initiatives like the Regional Security System and the Caribbean Basin Security Initiative, backed by decades of U.S. leadership, have built trust and resilience. Trinidad’s hosting of Tradewinds 2025, with its focus on maritime security and disaster response, underscores its commitment to collective defense. But security without energy is a house of cards.

Rubio and Young’s commitment to finding a solution is a blueprint for success. By exploring options that align Trinidad’s energy needs with U.S. sanctions, we can protect our interests and our allies. This could mean limited waivers for specific projects, increased U.S. investment in Trinidad’s renewables, or technical support to accelerate new gas fields. The goal is clear: a stable, prosperous Caribbean that stands with the U.S. against authoritarianism.

The alternative is grim. A weakened Trinidad could embolden Maduro, strain regional alliances, and open the door to Chinese or Russian influence. The U.S. has spent decades cultivating a democratic, secure Western Hemisphere. We can’t afford to let short-sighted policies unravel that progress.

America’s strength lies in its ability to lead with principle and pragmatism. Sanctions on Venezuela must remain a tool for justice, but they cannot come at the expense of our allies. Trinidad and Tobago deserves our support, not just in words but in actions that secure its energy future and, by extension, the Caribbean’s stability. The path forward is clear: stand firm against Maduro, but stand shoulder to shoulder with our friends.