In a significant development impacting global oil markets, US President Donald Trump has indicated a strong preference to exclude energy giant ExxonMobil from future operations in Venezuela. This comes after the company's top executive publicly described the crisis-hit South American nation's current conditions as "uninvestable."
Trump's Sharp Rebuke and White House Meeting
The controversy stems from a high-level meeting chaired by President Trump at the White House on Friday. The gathering, which included several oil and gas executives, was convened to discuss potential plans for tapping into Venezuela's vast oil reserves following the political ouster of former President Nicolás Maduro.
Expressing his displeasure, Trump told reporters aboard Air Force One while returning to Washington DC from Florida, "No, I didn't like Exxon's response. You know, we have so many that want it, and I'd probably be inclined to keep Exxon out. I didn't like their response. They're playing too cute." This direct criticism underscores the administration's frustration with the company's cautious approach.
ExxonMobil CEO's "Uninvestable" Assessment
At the centre of the dispute are the stark comments made by ExxonMobil CEO Darren Woods during the meeting. Woods laid out a series of stringent preconditions for any potential return to Venezuela, a country where the company has not operated for nearly two decades.
Woods explicitly stated that under the current "legal and commercial constructs and frameworks," Venezuela is "uninvestable." He argued that significant overhauls are necessary, including durable investment protections and changes to the nation's hydrocarbon laws, before any major investment could be considered.
Despite the long-term challenges, Woods expressed a short-term willingness to engage. He noted confidence that with the Trump administration collaborating with the Venezuelan government, the required changes could be implemented. "We think it's absolutely critical in the short term that we get a technical team in place to assess the current state of the industry and the assets," Woods said, adding that with an invitation and security guarantees, ExxonMobil is ready to deploy a team.
Industry-Wide Reluctance and the Path Forward
ExxonMobil was not alone in its apprehensions. According to reports, several other executives at the White House meeting voiced similar reluctance. They collectively warned that the oil industry would first need to secure extensive security and financial guarantees before embarking on what would inevitably be a years-long effort to revive and ramp up Venezuela's crippled oil production.
This collective stance from one of the world's largest energy companies and its peers highlights the profound challenges facing Venezuela's oil sector. The nation sits on the world's largest proven oil reserves, yet years of political turmoil, economic collapse, and sanctions have decimated its production capacity. The outcome of this standoff between the US administration and corporate giants will be crucial for Venezuela's economic future and global oil supply dynamics.
