ExxonMobil twice withdrew from Venezuela in the past 50 years as it faced government seizure of its oil assets. President Donald Trump might keep it that way.
Trump threatened on Sunday to keep the oil giant from re-entering Venezuela, only two days after ExxonMobil CEO Darren Woods delivered blunt remarks at the White House describing the South American nation as “uninvestable” without major changes to its political and legal structure.
“I didn’t like Exxon’s response,” Trump told reporters aboard Air Force One. “I’d probably be inclined to keep Exxon out. I didn’t like their response. They’re playing too cute.”
The Trump administration has been furiously attempting to prod Western oil executives to invest in Venezuela’s crippled oil sector following the U.S. ouster of its leader Nicolás Maduro. However, enormous uncertainty and costs have prompted a tepid response from the largest oil companies, which aren’t inclined to commit long-term capital to restart drilling operations while oil is trading at low prices anyway.
The lack of enthusiasm was on display during the Friday meeting between Trump and nearly two dozen oil executives that included Chevron, ExxonMobile, and ConocoPhillips. European oil companies such as Repsol and Eni also attended. However, it was Woods’ scripted but candid remarks that laid bare the significant divide between the Trump administration and major oil companies.
“We’ve had our assets seized there twice,” Woods said. “And so, you can imagine to re‑enter a third time would require some pretty significant changes from what we’ve historically seen here and what is currently the state.”
He went on: “If we look at the legal and commercial constructs — frameworks — in place today in Venezuela, today it’s uninvestable.”
Trump left the White House later that evening and told reporters that it was a “great meeting with oil executives. We’ve sort of formed a deal.”
The president has provided security guarantees to oil and gas companies that enter Venezuela. But he hasn’t detailed whether he’d wield the U.S. military for this purpose.
ExxonMobil shares fell slightly on Monday morning. Company shares slid roughly 1%, trading at $124 per share.
