Why Trump might exclude ExxonMobil from Venezuelan oil plans
What's the story
US President Donald Trump has hinted at possibly keeping ExxonMobil out of Venezuela, after the oil giant's CEO described the country's investment climate as "uninvestable." This inclination was expressed following a meeting between Trump and oil and gas executives to discuss Venezuelan oil reserves in the wake of President Nicolas Maduro's ouster.
Presidential reaction
Trump's response to Exxon's stance
Trump was not pleased with Exxon's response and said, "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." The President also said they are "playing too cute," indicating his dissatisfaction with the company's position on investing in Venezuela's oil reserves.
Investment hurdles
Exxon's CEO highlights challenges in Venezuela
ExxonMobil's CEO Darren Woods described the current conditions in Venezuela as "uninvestable," highlighting significant challenges that differ from Trump's more optimistic stance. He stressed that significant changes are needed to commercial frameworks and legal systems for investment. Woods also emphasized the need for durable investment protections and amendments to hydrocarbon laws in the country.
Optimistic outlook
Woods expresses confidence in potential changes
Despite the challenges, Woods expressed confidence that changes could be implemented with the Trump administration's cooperation. He stressed the importance of getting a technical team into Venezuela to assess the industry and assets' current state. This would help understand what it would take to get Venezuelan production back on market, provided there are security guarantees from the Venezuelan government.
Industry hesitation
Other executives share Exxon's concerns
Other executives at the meeting also shared Woods's reluctance, stressing that the industry would first need extensive security and financial guarantees. This is before they could even start a years-long process of increasing oil production in Venezuela. The hesitance highlights the complexities and challenges of investing in Venezuelan oil reserves amid political instability and economic uncertainty.
Executive action
Trump's executive order on Venezuelan oil revenue
Last week, Trump signed an executive order to protect Venezuelan oil revenue from judicial proceedings. The order warned that such actions could "undermine critical US efforts to ensure economic and political stability in Venezuela."