Trump touts Venezuela oil opportunity, ExxonMobil CEO calls it 'un-investable'
What's the story
United States President Donald Trump has pitched investment in Venezuela's vast, untapped oil sector to major US-based oil companies. He said the US is ready to take over the sale of 30-50 million barrels of previously sanctioned Venezuelan crude. However, Darren Woods, CEO of ExxonMobil, the largest US oil company, said that under current commercial constructs and frameworks, Venezuela is "un-investable."
Investment assurance
Trump assures oil executives of safety, security
Despite Venezuela's history of state asset seizures and ongoing US sanctions, Trump assured oil executives of their safety. "You have total safety," he said, adding, "You're dealing with us directly and not dealing with Venezuela at all. We don't want you to deal with Venezuela." Trump said, "Our giant oil companies will be spending at least $100 billion of their money, not the government's money. They don't need government money. But they need government protection."
Military action
US military seizes 5th tanker linked to Venezuelan oil
The meeting came as US forces seized their fifth tanker linked to Venezuelan oil in a month. This is part of Trump's broader strategy to control the exporting, refining, and production of Venezuelan petroleum. He hopes this will keep gasoline prices low and show Americans he can reduce energy costs amid rising living expenses.
Industry response
Energy Secretary reports 'tremendous interest' from oil companies
Energy Secretary Chris Wright said after the meeting that companies showed "tremendous interest" in investing in Venezuela. Chevron made a specific pledge, and it could take eight to 12 years for daily production to triple to three million barrels a day. Trump also justified ousting Maduro by saying that if the US didn't act, China or Russia would have intervened.
Diplomatic efforts
US and Venezuela explore restoring diplomatic relations
The United States and Venezuela are also exploring restoring diplomatic relations. A small team of US diplomats visited Venezuela to assess reopening the US Embassy in Caracas. Meanwhile, Trump announced a meeting with Maria Corina Machado, leader of Venezuela's opposition party. He had earlier invited Colombian President Gustavo Petro to visit the White House after a friendly phone call.