• Trump tells reporters he’s inclined to exclude ExxonMobil from Venezuelan oil restructure
• CEO Darren Woods said Friday that Venezuela is currently uninvestable without major legal reforms
• Company had assets seized twice by Venezuelan government, faces billions in outstanding claims

WASHINGTON, DC (TDR) — President Donald Trump said he plans to exclude ExxonMobil from his push to rebuild Venezuela’s oil industry, expressing displeasure with the company’s response to his invitation for American energy firms to invest at least $100 billion in the South American nation.

“I didn’t like Exxon’s response. You know we have so many that want it,” Trump told reporters aboard Air Force One on Sunday. “I’d probably be inclined to keep Exxon out. They’re playing too cute.”

The president’s rebuke came two days after ExxonMobil CEO Darren Woods told administration officials during a White House meeting that Venezuela remains “uninvestable” without significant changes to its legal and commercial frameworks.

White House Meeting Exposes Industry Skepticism

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Trump hosted a gathering of major oil executives on Friday to pitch his vision for American companies revitalizing Venezuela’s energy sector following the U.S. military operation that removed President Nicolás Maduro from power on January 3.

Speaking before reporters at the White House, Woods outlined ExxonMobil’s long history in Venezuela dating to the 1940s, noting the company has had assets seized twice by the Venezuelan government as it moved to nationalize the oil industry.

“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. If we look at the legal and commercial constructs—frameworks—in place today in Venezuela, today it’s uninvestable.”

Woods emphasized that significant reforms would be necessary, including changes to commercial frameworks, the legal system, durable investment protections, and modifications to the country’s hydrocarbon laws. He expressed confidence that the Trump administration working with the Venezuelan government could implement these changes.

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The ExxonMobil chief said his company stands ready to send a technical team to assess the current state of Venezuela’s oil infrastructure, provided the interim government extends an invitation and appropriate security guarantees are provided.

Venezuela’s Untapped Potential and Difficult Reality

Venezuela holds the world’s largest proven oil reserves at approximately 303 billion barrels, accounting for roughly 17 percent of global reserves—more than Saudi Arabia. However, the country currently produces only about 800,000 barrels per day, down from a peak of 3.5 million barrels daily in the late 1990s.

The decline stems from decades of underinvestment, maintenance failures, and economic mismanagement under Socialist leadership. Most of Venezuela’s reserves consist of extra-heavy crude in the Orinoco Belt that requires advanced technical expertise and specialized refining capabilities.

Energy analysts estimate that restoring Venezuelan production to historical levels could require more than $100 billion in investment and take a decade or longer to accomplish. Expanding output by just 500,000 to one million barrels per day would likely cost over $10 billion spread across two to three years, according to Columbia University energy scholars.

Mixed Response From Energy Sector

ConocoPhillips CEO Ryan Lance echoed concerns about Venezuela’s need for restructuring its energy system. The company has outstanding arbitration claims against Venezuela approaching $10 billion from asset seizures during the 2007 nationalization under Hugo Chávez.

Chevron, currently the only major U.S. oil company operating in Venezuela, issued a statement saying it remains “focused on the safety and wellbeing of our employees, as well as the integrity of our assets” and will continue operating in full compliance with all relevant laws and regulations.

The Biden administration had granted Chevron limited licenses to operate joint ventures with Venezuela’s state oil company PDVSA, though the Trump administration restricted these operations in July 2025 to prevent proceeds from reaching the Maduro government.

Trump’s Venezuela Strategy

The president has framed the U.S. military intervention that captured Maduro and his wife Cilia Flores as partly aimed at securing access to the country’s vast energy resources. Trump has pledged government security assistance to companies willing to invest in rebuilding Venezuela’s dilapidated oil infrastructure.

“We’re going to have our very large United States oil companies—the biggest anywhere in the world—go in, spend billions of dollars, fix the badly broken infrastructure, the oil infrastructure, and start making money for the country,” Trump said during Saturday’s press conference following the military operation.

However, Trump did not provide specific details about the type of security guarantees or backstops that would be offered to participating oil companies when questioned by reporters.

Market Uncertainty Persists

ExxonMobil shares fell 1.1 percent in premarket trading Monday following Trump’s comments about potentially excluding the company from Venezuelan operations. Energy analysts note that the global oil market currently faces oversupply, with crude prices below $60 per barrel and uncertain long-term demand projections.

The administration’s aggressive timeline for securing massive private sector investment clashes with the oil industry’s traditional approach to major projects, which typically involve years of due diligence, risk assessment, and legal protections before committing capital.

Can Trump convince oil companies to invest billions in Venezuela without the legal and commercial reforms they say are essential?

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