Trump Urges Investment in Venezuela; U.S. Oil Giants Remain Cautious

On the 9th, U.S. President Trump strongly encouraged top executives from major oil companies to invest in Venezuela's vast oil reserves, but was met with cautious responses, with ExxonMobil’s CEO bluntly stating that without comprehensive reforms, it is "impossible to invest" in Venezuela.

That afternoon, Trump held a meeting at the White House with senior executives from more than 20 oil companies. The only remaining U.S. oil company still operating locally, Chevron, as well as top executives from Exxon Mobil and ConocoPhillips, among others, gathered together.

Trump stated that the U.S. government would provide security assurances for companies, but he clearly hoped that the industry would actively pursue opportunities in the Venezuelan market, expressing at the outset that he expected American oil companies to invest at least $100 billion collectively to raise Venezuela’s oil production.

After Venezuelan President Maduro was apprehended by the U.S., Trump told these industry leaders that his administration would decide which companies would be permitted to operate in Venezuela, rather than the authorities in Caracas.

Trump said that oil companies would “deal directly with us,” implying that the U.S. government, in developing Venezuela’s resources, would attempt to completely exclude this oil-rich but cash-strapped Latin American country from the decision-making process.

Despite Trump’s assurances, ExxonMobil CEO Woods remained skeptical.

He said: “Our assets there have been expropriated twice before, so obviously, if we were to re-enter for the third time, there would have to be fundamental changes from what we have seen in the past and the current situation.”

Woods stated bluntly: “If we look at Venezuela’s current legal and business framework, it is not investable.”

Analysts believe that for Venezuela to regain its past oil output glory, it may require investments of tens of billions of dollars. Years of neglect, underinvestment, mismanagement, and corruption have resulted in severe aging of oil and gas fields, making a comprehensive overhaul of infrastructure imperative.