President Donald Trump indicated that he intends to keep ExxonMobil out of Venezuela, criticizing the company’s recent conduct regarding investment opportunities in the nation. During a press conference on March 3, 2024, aboard Air Force One, Trump expressed his dissatisfaction with Exxon’s response to his proposed $100 billion investment plan for the Venezuelan oil industry, stating, “I’d probably be inclined to keep Exxon out. I didn’t like their response. They’re playing too cute.”
This statement comes as tensions rise in the region, following a recent military strike by US forces in Venezuela that resulted in the capture of President Nicolás Maduro and his wife. Maduro is currently facing trial in a New York court on charges of drug trafficking and weapons offenses.
ExxonMobil’s CEO, Darren Woods, conveyed a cautious outlook during a meeting with Trump and other oil executives at the White House. He remarked that Venezuela is presently “uninvestable,” citing existing legal and commercial frameworks as deterrents for potential investment. “If we look at the legal and commercial constructs and frameworks in place today in Venezuela — today, it’s uninvestable,” Woods stated.
Despite Exxon’s reluctance, other oil companies appear more optimistic about opportunities in Venezuela. Executives from Chevron have committed to significantly increasing oil production in the country, with vice chairman Mark Nelson announcing plans to double their output with local partners “effective immediately.”
ExxonMobil has operated in Venezuela in the past, but Woods noted that the company has faced asset seizures during both of its previous ventures in the country. He emphasized the necessity of substantial changes within the Venezuelan government before Exxon could consider reentering the market. Nevertheless, Woods remains confident that the Trump administration could facilitate the necessary transformations.
Amid these developments, Exxon’s stock price experienced minimal fluctuations, closing flat after trading on Friday. Over the past year, the company’s shares have risen by more than 16%, reflecting a broader interest in the energy sector despite current geopolitical challenges.
As the situation in Venezuela continues to evolve, the implications of Trump’s comments and the differing attitudes of oil executives could shape the future landscape of oil investment in the region.
