Trump Hints at Excluding ExxonMobil from Venezuela Reconstruction Project

Q&A with Reporters on Return to Washington, D.C.
Mentions, "I Don't Like ExxonMobil's Response"
ExxonMobil Cites 'Uninvestable' at White House Meeting

U.S. President Donald Trump has stated that ExxonMobil could be excluded from the project to rebuild Venezuela's oil industry. This remark is interpreted as pressure on ExxonMobil, which had previously declared the Venezuelan oil sector "uninvestable" after President Trump convened oil industry leaders to discuss the sector's reconstruction.

According to the Financial Times (FT) and Bloomberg on January 11 (local time), President Trump told reporters aboard his private jet returning from the Mar-a-Lago resort in Florida to Washington, D.C., "I am leaning toward excluding ExxonMobil from the Venezuelan oil reconstruction project," adding, "I don't like their response. They are being too hesitant."

Earlier, President Trump had summoned about 20 U.S. oil industry leaders to the White House, asserting that at least 100 billion dollars could be invested in Venezuela's oil sector to resume production. At the meeting, Darren Woods, CEO of ExxonMobil, pointed out, "Given the current legal and commercial framework in Venezuela, it is not possible to invest."

There are reasons for ExxonMobil's cautious stance. The company has had its assets seized twice by the Venezuelan government in the past. During the mid-2000s, under former President Hugo Chavez, the government nationalized oil operations, forcing ExxonMobil to completely withdraw from the Venezuelan market.

While expressing his concerns, CEO Darren Woods also stated, "If the Venezuelan government extends an invitation and provides appropriate safety guarantees, ExxonMobil is prepared to dispatch a team to the country."

Some expect that it could take up to 10 years to revive Venezuela's oil industry. Despite the United States' expressed determination to gain full control over Venezuelan oil exports, this situation highlights the practical concerns of the U.S. oil industry regarding whether large-scale local investment can be sustained over an extended period.

When reporters asked President Trump whether he had mentioned safety guarantees to the oil companies, he replied, "The oil companies have been assured that it will be safe and that nothing will happen. In reality, nothing will happen."

Meanwhile, at the meeting between President Trump and oil industry leaders, Chevron, ExxonMobil's biggest competitor, took a positive stance. Mark Nelson, Vice Chairman of Chevron, said at the White House meeting, "We are ready to significantly increase Venezuela's current crude oil production of about 240,000 barrels per day," adding, "We can boost output by about 50% within the next 18 to 24 months." Chevron remains the only Western company still operating oil businesses in Venezuela. Other CEOs, including those from Spanish oil company Repsol, also stated that they are prepared to make further investments in Venezuela, provided that appropriate legal and commercial frameworks are established.