U.S. President Donald Trump has urged oil executives to invest $100 billion in Venezuela’s oil sector, promising total safety and direct dealings with the U.S. government, but faced cautious responses, with ExxonMobil’s CEO stating the country is currently ‘uninvestable’ due to historical asset seizures and lack of stability. The meeting at the White House highlighted the challenges in reviving Venezuela’s oil production amid ongoing political uncertainty and U.S. sanctions.
During the Friday gathering, Trump assured executives from major firms like Chevron, ExxonMobil, and Shell that they would have ‘total safety’ and should proceed with investments, emphasizing that they would deal directly with the U.S. and not with Venezuela. He framed the initiative as a way to boost global energy supplies and lower prices, calling for at least $100 billion in private spending to tap into Venezuela’s vast reserves. However, the oil bosses expressed reluctance, citing the need for significant changes in commercial frameworks and legal protections before committing substantial funds.
ExxonMobil CEO Darren Woods was particularly vocal, noting that the company had its assets seized twice in Venezuela and that the country remains ‘uninvestable’ under current conditions. Other executives, including those from Repsol and Eni, acknowledged the potential but stressed that investments would require durable safeguards and a stable political environment. Chevron, the last major U.S. firm operating in Venezuela, indicated it might increase production, but no immediate financial pledges were made at the meeting.
Venezuela’s oil industry has been crippled by decades of mismanagement, nationalization under former leaders Hugo Chávez and Nicolás Maduro, and stringent U.S. sanctions that have slashed production to about one million barrels per day. The U.S. recently ousted Maduro in a raid and is working with interim leader Delcy Rodríguez, but relations remain tense, with the U.S. seizing oil tankers and aiming to control sales through American accounts. This backdrop complicates efforts to attract large-scale investment.
Analysts point out that while Trump’s promises are ambitious, actual commitments are likely to be modest initially. David Goldwyn, a former U.S. energy envoy, described the executives’ response as polite but non-committal, with investments expected in the tens of millions, not billions, without better conditions. Rystad Energy estimates it would take $8-9 billion annually to triple production by 2040, far from Trump’s $100 billion target, and subsidies or political stability would be necessary for such scale.
The U.S. administration has signaled it will selectively roll back sanctions and establish a sales process for Venezuelan oil, with revenues going into U.S.-controlled accounts to maintain leverage. However, this approach has drawn criticism for resembling imperialistic control and raising concerns about whether funds will reach Venezuela for essential needs, potentially exacerbating the economic crisis. Experts warn that without a clear path to stability, companies will remain hesitant.
In the short term, some redirection of oil sales from China to the U.S. is anticipated, but long-term investments hinge on concrete terms from both the U.S. and Venezuelan sides. The situation underscores the complexities of leveraging Venezuela’s oil wealth amidst geopolitical maneuvering, with implications for global energy markets and regional stability. As companies await further details, the prospect of significant investment remains uncertain, balancing opportunity against profound risk.
