This past Friday, energy giant ExxonMobil reminded U.S. President Donald Trump of its history of expropriation in Venezuela, deeming the country still unsuitable for investment.
These comments emerged during a White House meeting with leaders from top U.S. oil companies, including ExxonMobil, Chevron, and ConocoPhillips, to discuss the future of Venezuelan energy and potential investment plans following the downfall of Nicolás Maduro.
Darren Woods, CEO of ExxonMobil, was a key speaker at the gathering, highlighting the company's tumultuous past with the Venezuelan government. He noted that ExxonMobil had been expropriated twice by the regime.
"We have a longstanding history in Venezuela. Our assets have been seized there twice. Understandably, returning a third time would necessitate significant changes," Woods stated.
Woods described Venezuela as a "non-investable" country at present but expressed optimism about Trump's leadership and the new interim Venezuelan government's efforts.
"Our philosophy is ensuring stable, long-term investments that benefit the people. Regarding Venezuela, with our history of expropriations, the current legal state makes investment impossible. Significant changes are required for it to be a sustainable investment," Woods emphasized.
Despite the challenges, Woods remained positive about the White House's role: "With this administration and President Trump collaborating closely with the Venezuelan government, we trust positive changes can be implemented," he added.
The White House meeting focused on reconstructing Venezuela's oil sector, which has suffered from corruption, expropriations, and infrastructure decay.
Trump urged companies to "bet on Venezuela's energy renaissance," promising U.S. support for the physical and financial security of investments in the South American nation.
"American companies will have the opportunity to rebuild Venezuela's dilapidated energy infrastructure and boost oil production to unprecedented levels," Trump declared at the meeting's onset, flanked by Vice President J.D. Vance, Secretary of State Marco Rubio, and Secretary of the Interior Doug Burgum.
During the session, President Trump announced a deal for the U.S. to receive 50 million barrels of Venezuelan crude oil, expecting indefinite deliveries.
"One benefit for the United States will be even lower energy prices," Trump assured, urging oil firms to invest "100 billion dollars" in rebuilding Venezuela's infrastructure.
Sources confirmed by Reuters indicate the White House may leverage the Export-Import Bank (Ex-Im Bank) to fund significant investment projects in Venezuela, mitigating financial risks for companies choosing to operate there.
While Chevron, the sole U.S. oil firm with limited operations in Venezuela, expressed readiness to expand investments under the new political climate, others like ConocoPhillips and ExxonMobil remain cautious due to high costs and institutional instability.
"Companies are skeptical about political stability and operational costs in Venezuela," Reuters reported, citing industry sources.
The meeting marks a critical step in Trump's strategy to oversee and revive Venezuelan oil production in coordination with Caracas's new authorities.
Since Nicolás Maduro's capture by U.S. forces on January 3, the Trump administration has centered its Venezuela policy around oil, aiming to ensure transparency, stability, and the return of foreign investments.
Trump stated his clear objective: "We need them to invest, recoup their money quickly, and then distribute the benefits between Venezuela, the United States, and the companies. It's simple," he concluded.
Key Questions About U.S. Oil Investments in Venezuela
Why is Venezuela considered "unviable" for investment by ExxonMobil?
ExxonMobil considers Venezuela "unviable" for investment due to previous expropriations and the current unstable legal environment, which makes long-term, stable investments problematic.
What role does the Trump administration see for U.S. companies in Venezuela?
The Trump administration envisions U.S. companies playing a crucial role in rebuilding Venezuela's energy infrastructure, boosting oil production, and contributing to the country's economic recovery.
How does the U.S. plan to support investments in Venezuela?
The U.S. plans to support investments in Venezuela by providing guarantees for the physical and financial security of these investments and potentially using the Export-Import Bank to finance large projects.