Prominent U.S. oil leaders informed President Donald Trump at the White House on Friday that Venezuela must implement significant reforms to draw in investment.
Trump stated that the sector would invest a minimum of $100 billion to revitalize Venezuela’s energy industry with guarantees of U.S. security. However, the chief executives of major oil corporations such as ExxonMobil and ConocoPhillips did not agree during the meeting to swiftly re-enter Venezuela.
Exxon CEO Darren Woods told Trump that the Venezuelan market is currently “uninvestable.” Venezuela nationalized Exxon’s and Conoco’s assets in 2007, and Caracas owes the companies billions in pending claims from arbitration disputes.
“We’ve had our assets taken there twice, so entering a third time would necessitate substantial changes from what we’ve typically experienced here,” Woods explained to Trump at the White House. “Examining the legal and commercial frameworks currently in Venezuela shows it’s uninvestable.”
Woods indicated that Exxon is ready to dispatch a technical team to assess the present condition of Venezuela’s oil sector and assets.
ConocoPhillips CEO Ryan Lance praised Trump for removing former President Nicolás Maduro. He remarked that the finance sector will need to assist in restructuring Venezuela’s debt and invest billions in financing to restore the nation’s infrastructure.
Lance also urged for a revamp of the state-run oil company Petróleos de Venezuela (PDVSA).
“As we contemplate big and bold initiatives, we should also be considering a complete restructuring of the Venezuelan energy system, including PDVSA,” Lance stated to the president.
Trump conveyed to the Conoco CEO that the U.S. government is not focused on reclaiming the assets the company lost during the 2007 nationalization.
“We are not going to dwell on what was lost in the past, because that was their error,” Trump remarked. “That was a different administration. You’re going to earn a lot of money, but we’re not going to revisit the past.”
Chevron is the sole U.S. oil major still operating in Venezuela through partnerships with PDVSA. Vice Chairman Mark Nelson stated that Chevron has a plan to quickly enhance its production, which is currently about 240,000 barrels per day.
“We have a clear path ahead to nearly double our liftings from these joint ventures immediately,” Nelson informed Trump. “We can also elevate our production through our disciplined investment strategies by around 50% within the next 18 to 24 months.”
Treasury Secretary Scott Bessent suggested on Thursday that the U.S. might seek more involvement from smaller oil companies instead of the majors to invest in Venezuela.
“The large oil companies that take their time, with corporate boards, are not interested,” Bessent commented on Thursday at the Economic Club of Minnesota.
“I can assure you that independent oil firms and individuals, wildcatters – our phones are inundated with inquiries,” Bessent added. “They are eager to get to Venezuela immediately.”
