President Donald Trump has indicated he may exclude ExxonMobil from planned efforts to revitalize Venezuela’s oil sector. This follows a disagreement with ExxonMobil’s CEO, Darren Woods, over the feasibility of investment in the country.
Disagreement with ExxonMobil
Trump stated, “I didn’t like Exxon’s answer. We have a lot of people who want [to invest]. I’m probably going to leave Exxon out. I didn’t like their answer. They’re playing it too smart.” The comments were made to journalists as he boarded Air Force One in West Palm Beach, Florida.
The disagreement stems from a meeting held Friday between Trump and executives from major oil companies. While most expressed support, Woods reportedly stated that Venezuela “is not for investments” given the current commercial landscape.
Broader Investment Plans
Despite the potential exclusion of ExxonMobil, Secretary of Energy Chris Wright stated that Exxon’s position is “atypical.” He affirmed that “at least a dozen” companies are prepared to return to Venezuela following a recent military action that led to the capture of President Nicolás Maduro.
Wright identified Chevron, Shell, Repsol, and ENI as companies that will “immediately” increase their investment in Venezuela.
To facilitate these investments, Trump declared a “national emergency” on Saturday. This measure aims to protect Venezuelan oil revenue held in U.S. Treasury accounts from creditors. The U.S. has also taken control of the sales of 30 to 50 million barrels of previously sanctioned Venezuelan crude oil, and plans to control these sales indefinitely.
Control of Venezuelan Oil
The White House is framing its involvement in Venezuela as an economic endeavor. Trump has reportedly seized vessels carrying Venezuelan oil and intends to manage global sales of the crude.
Frequently Asked Questions
What prompted Trump’s comments about ExxonMobil?
Trump’s comments followed ExxonMobil CEO Darren Woods’ assessment that Venezuela is currently not a viable location for investment, given existing commercial conditions.
Which companies are reportedly prepared to invest in Venezuela?
Chevron, Shell, Repsol, and ENI have been identified as companies that will “immediately” increase their investment in Venezuela, according to Secretary of Energy Chris Wright.
What is the purpose of the “national emergency” declaration?
The declaration is intended to protect Venezuelan oil revenue held in U.S. Treasury accounts from being claimed by creditors.
How might the U.S. approach to managing Venezuelan oil sales impact global energy markets?
