Exxon Mobil CEO bluntly stated that Venezuela is "not investable," Trump angrily retorted: then don't come!
The U.S. government is intensifying negotiations with Western oil companies, trying to attract at least $100 billion in private sector investment to help rebuild Venezuela's battered oil sector. Despite the White House's strong lobbying efforts, global major energy groups remain hesitant to enter the country without specific guarantees
After the company's CEO bluntly stated that Venezuela's current business environment is "not investable," Trump threatened to block Exxon Mobil's investment activities in Venezuela.
According to CCTV News, on January 9 local time, U.S. President Trump held talks at the White House with executives from about 20 major oil companies, including Chevron and Exxon Mobil, in an attempt to reach an agreement on investing in Venezuela's oil industry. However, several U.S. oil company executives expressed caution regarding the next steps for investing in Venezuela. Exxon Mobil CEO Darren Woods warned that the country must make "significant changes" before making large-scale capital commitments.
According to the Financial Times, Trump responded on Sunday, expressing dissatisfaction with Exxon Mobil's response and leaning towards excluding the company from the Venezuelan market:
I don't like Exxon Mobil's response... I might lean towards keeping Exxon Mobil out. They are being clever there.
"Not Investable" Business Assessment
At the White House meeting, in the face of the U.S. government's strategic intention to leverage oil revenues to revive Venezuela's economy and "benefit the U.S.," Darren Woods took a more skeptical stance. He pointed out to the president that considering Exxon Mobil's assets in the country had been seized twice before, a third re-entry into the market would require seeing "considerable changes" compared to historical situations and the current state.
Woods clearly stated that if one examines Venezuela's current legal and business framework, "today it is not investable."
The U.S. government is intensifying negotiations with Western oil companies, attempting to attract at least $100 billion in private sector investment to help rebuild Venezuela's severely damaged oil sector. Woods' remarks highlight that despite the White House's vigorous lobbying, global major energy groups remain hesitant to enter the country without specific guarantees.
Concessions Under Pressure
However, under Trump's pressure, Woods softened his stance. He stated that Exxon Mobil would send a technical team to Venezuela in the coming weeks to assess the situation and expressed "confidence" that the necessary reform measures for investment "could be in place."
In contrast to Exxon Mobil's caution, other oil executives conveyed a more optimistic message to Trump.
As the only U.S. company currently operating on the ground in Venezuela, Chevron stated that it could increase production by 50% within 18 to 24 months by expanding its existing operations. The company's current daily production is about 240,000 barrels. Trump revealed to reporters that many in the oil industry are "very interested" in opportunities in Venezuela.
External analysis suggests that without legal, financial, and security guarantees from Washington, the oil industry is unlikely to commit to large-scale investments in Venezuela.
In response to concerns from businesses about guarantees, Trump stated on Sunday: "They will be safe, there will be no problems, this will never be an issue."
