In a significant move, US President Donald Trump has indicated his intention to exclude oil giant Exxon Mobil Corporation from his administration's push to send American energy companies to rebuild Venezuela's crippled oil infrastructure. The President expressed his dissatisfaction with the company's cautious response to his proposal during a high-stakes meeting.
Trump's Displeasure with Exxon's Stance
Speaking to reporters aboard Air Force One on Sunday while returning to Washington, President Trump made his position clear. "I didn't like Exxon's response," Trump stated, adding, "I'll probably be inclined to keep Exxon out. I didn't like their response. They're playing too cute." This comment followed a crucial meeting Trump convened on Friday with executives from approximately twenty major oil firms, aiming to persuade them to initiate operations in the South American nation.
During that White House meeting, Exxon Mobil's leadership presented one of the strongest objections to the administration's plans. The company's CEO, Darren Woods, directly told the President that Venezuela, under its current conditions, is "uninvestable." Woods pointed to the company's painful history in the country, where it has seen its assets seized on two separate occasions.
Exxon's 'Uninvestable' Argument and the $100 Billion Challenge
Elaborating on the firm's position, Darren Woods explained that a potential re-entry would require profound changes. "We've had our assets seized there twice, and so you can imagine to re-enter a third time would require some pretty significant changes from what we've historically seen here," Woods said. He emphasised the need for durable investment protections and a reform of the country's hydrocarbons law before Exxon would consider committing capital.
Trump's latest remarks underscore the immense difficulty in convincing the US oil industry to undertake the ambitious, long-term project of reviving Venezuela's once-mighty energy sector. A recent Bloomberg report estimates that reversing years of mismanagement and underinvestment could require up to $100 billion and a decade of work. Despite recent US actions to assume control over Venezuelan oil exports, major questions linger about guaranteeing such massive, protracted investment in a nation plagued by corruption and insecurity.
Contrasting Approaches: Chevron's Readiness vs. Trump's Guarantees
In stark contrast to Exxon's reluctance, Chevron Corp., its biggest US rival, signalled a readiness to expand. Chevron Vice Chairman Mark Nelson informed the meeting that his company was prepared to significantly increase its output in Venezuela. Chevron is the sole Western oil major that maintained its operations in the country throughout Nicolas Maduro's presidency.
Seeking to allay industry fears, President Trump on Sunday promised comprehensive government backing for companies willing to invest. "Guarantees that they’re going to be safe, that there’s going to be no problem. And there won’t be," he assured. However, the President did not specify the exact mechanisms of these guarantees or how he might potentially seek to include a reluctant Exxon Mobil in the future. As of now, Exxon has not issued a public response to Trump's exclusionary comments.
