Exxon Mobil remains committed to exploring opportunities in Venezuela despite facing criticism from Trump following a recent White House meeting with major oil executives. The company is prepared to send an assessment team to the country, according to a source familiar with the company's strategy.

White House Meeting Sparks Controversy

During a White House meeting on Friday, Exxon CEO Darren Woods outlined specific conditions for the company's potential involvement in Venezuela. Woods emphasized that Venezuela needed to implement legal changes and establish investment protections before Exxon would commit to operating in the country. The CEO also expressed his belief that the Trump administration could help resolve Venezuela's ongoing challenges.

Trump's response came days later when he told reporters on Air Force One that he "didn't like Exxon's response" and indicated he was inclined to keep the oil major out of Venezuela. Exxon executives were reportedly surprised by Trump's reaction, particularly given Woods' supportive comments about the administration's potential role in solving Venezuela's problems.

Assessment Plans Move Forward

Despite the administration's criticism, Exxon maintains its readiness to deploy resources to Venezuela. Woods indicated during the meeting that the company could send a technical team to the country within weeks to begin evaluating oil infrastructure and other assets. This assessment would be crucial for determining the scope and viability of potential operations in the country.

The White House meeting occurred less than a week after American forces captured and removed Venezuelan President Nicolas Maduro in an overnight raid. Trump has subsequently urged American energy firms to invest $100 billion to rebuild Venezuela's oil industry.

Industry Background and Challenges

The current situation reflects a complex history between American oil companies and Venezuela. Before former President Hugo Chavez nationalized the industry between 2004 and 2007, Exxon, ConocoPhillips, and Chevron were key partners of Venezuela's state oil company, PDVSA.

Chevron emerged from the recent White House meeting in a stronger position, as it has room to invest in existing operations to increase production. The company is currently the only American oil major operating in Venezuela.

Industry Perspective on Investment Conditions

American Petroleum Institute President Mike Sommers outlined key requirements for industry investment in Venezuela during a Monday briefing. He emphasized the need for greater workforce security and comprehensive policy reforms, including measures covering contract sanctity.

Sommers identified debts from previous asset expropriations as a "significant hurdle for many companies that may be concerned about investing in this resource." However, he acknowledged that Venezuela's energy assets are substantial enough to attract significant interest and expressed confidence that the Trump administration understands industry concerns.

"The asset base in Venezuela is huge and the potential for investment is very significant," Sommers stated, highlighting the country's substantial energy resources despite the operational challenges.

Industry experts suggest that long-term concerns about Venezuela operations remain unchanged even after the White House meeting. Energy analysts note that Trump's comments would not necessarily influence companies' long-term plans, given that major energy projects require several years to build and many more years to provide returns on investment.

Trump has expressed his inclination to exclude ExxonMobil from Venezuelan oil ventures after the company's CEO described the South American nation's investment climate as problematic. The comments followed a White House meeting where oil executives discussed opportunities in Venezuela's oil sector.

White House Meeting on Venezuelan Oil

Trump chaired a meeting on Friday with oil and gas executives to discuss plans for Venezuelan oil reserves following the ouster of Nicolás Maduro. During this meeting, ExxonMobil CEO Darren Woods presented a cautious assessment of the investment environment in Venezuela.

Speaking to reporters aboard Air Force One, Trump expressed his dissatisfaction with ExxonMobil's position: "No, I didn't like Exxon's response. You know, we have so many that want it, and I'd probably be inclined to keep Exxon out. I didn't like their response. They're playing too cute."

ExxonMobil's Assessment of Venezuela

Woods characterized Venezuela's current conditions as fundamentally problematic for investment. "If we look at the legal and commercial constructs and frameworks in place today in Venezuela today, it's uninvestable," Woods stated during the meeting.

The CEO outlined several areas requiring substantial reform:

Short-term Assessment Proposal

Despite the challenges, Woods expressed willingness to conduct preliminary assessments. ExxonMobil has been absent from Venezuela for nearly 20 years, and the CEO emphasized the importance of understanding current conditions.

"We think it's absolutely critical in the short term that we get a technical team in place to assess the current state of the industry and the assets to understand what would be involved to help the people of Venezuela get production back on the market," Woods explained.

The company indicated readiness to deploy assessment teams with appropriate Venezuelan government invitation and security guarantees.

Industry-wide Concerns

ExxonMobil was not alone in expressing reservations about Venezuelan operations. Several other executives at the meeting voiced similar concerns about the investment environment. According to reports, industry participants warned that extensive security and financial guarantees would be necessary before beginning any yearslong effort to ramp up oil production in the country.

The cautious industry response highlights the complex challenges facing potential investors in Venezuela's oil sector, despite the country's significant petroleum reserves and the political changes following Maduro's departure.