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.

US President Donald Trump expressed strong dissatisfaction with Exxon Mobil's response to his Venezuela oil infrastructure proposal, suggesting the energy giant may be excluded from the administration's ambitious plans. Speaking to reporters aboard Air Force One on Sunday while returning to Washington, Trump criticized the company's stance during a high-profile meeting held just days earlier.

Trump's Criticism of Exxon's Response

Trump's comments followed a Friday meeting with approximately 20 oil company executives, where he pushed for American companies to begin operations in Venezuela to rebuild the country's oil infrastructure. The President made clear his displeasure with Exxon's position during that discussion.

Exxon's "Uninvestable" Assessment

During Friday's White House meeting, Exxon Mobil CEO Darren Woods delivered one of the strongest responses against the administration's Venezuela plans. Woods characterized the country as "uninvestable" based on the company's previous experiences and current conditions in Venezuela.

Woods outlined specific concerns that would need addressing before any potential re-entry:

• Asset Seizure History: Exxon has had assets seized in Venezuela twice previously
• Legal Framework Deficiencies: Current legal and commercial constructs deemed inadequate
• Investment Protection Requirements: Need for durable investment protections
• Regulatory Reform Needs: Venezuela's hydrocarbons law requires significant changes

"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.

Industry Challenges and Investment Scale

Trump's Sunday comments underscore the broader challenge of persuading the US oil industry to commit to Venezuela's energy sector reconstruction. According to Bloomberg analysis, reviving Venezuela's oil industry and addressing years of mismanagement and underinvestment may require $100 billion and take a full decade to complete.

Administration's Guarantees and Industry Response

Despite the pushback from Exxon, Trump reiterated his administration's commitment to providing comprehensive guarantees to oil companies willing to invest in Venezuela. "Guarantees that they're going to be safe, that there's going to be no problem. And there won't be," Trump stated on Sunday, though he did not specify the exact mechanisms for such protections.

The administration's approach has received varied responses from different oil companies. Chevron Corp., Exxon's biggest US rival, represents a contrasting position as the only Western oil major to have maintained operations in Venezuela during the previous administration. Chevron Vice Chairman Mark Nelson indicated at Friday's White House meeting that his company was prepared to significantly increase output in the country.

Market and Policy Implications

The potential exclusion of Exxon Mobil from Venezuela operations highlights the complex dynamics between the Trump administration's foreign policy objectives and private sector risk assessments. While the administration has moved to take control of Venezuelan oil exports, significant questions remain about guaranteeing major investments over extended periods in a country facing ongoing challenges with corruption and security.

Exxon Mobil has not issued a public response to Trump's Sunday statements regarding potential exclusion from the Venezuela initiative.