Trump Signals Hesitation to Allow ExxonMobil Investment in Venezuela
President Donald Trump indicated on Sunday that he may not support allowing ExxonMobil to invest in Venezuela, following skepticism expressed by the oil giant’s CEO about prospects for oil investment in the country. This development raises questions about U.S. oil corporate involvement in Venezuela after the ousting of former President Nicolás Maduro.
Why It Matters
As the Trump administration seeks to reinvigorate Venezuela’s economy post-Maduro, the response from major U.S. oil companies like ExxonMobil is crucial. Their hesitancy reflects broader concerns about investment risks in a nation steeped in political instability and historical asset seizures, signaling potential obstacles to U.S. plans for economic recovery in Venezuela.
Key Developments
- Trump expressed discontent with ExxonMobil’s outlook on investment in Venezuela.
- During a meeting with oil executives, he emphasized direct dealings with the U.S. government rather than Venezuelan authorities.
- Darren Woods, CEO of ExxonMobil, described the current investment climate in Venezuela as “uninvestable.”
- Trump signed an executive order aimed at safeguarding Venezuelan oil revenues from judicial claims.
- The U.S. plans to control significant Venezuelan oil sales globally amidst ongoing sanctions and political turmoil.
Full Report
Trump’s Reaction
Onboard Air Force One, President Trump shared his priorities regarding foreign investment in Venezuela. He was notably critical of ExxonMobil’s stance, stating to reporters, “I didn’t like Exxon’s response. They’re playing too cute.” His remarks underline the administration’s desire for U.S. companies to confidently engage in the Venezuelan market as the political situation evolves.
Concerns from ExxonMobil
Darren Woods, leading the largest U.S. oil company, remarked during a recent meeting that the existing commercial structures in Venezuela render the country unworthy of investment. His assessment reflects a cautious approach within the industry, considering the risks attached to investing in a country still grappling with political upheaval and U.S. sanctions.
Government Actions
In tandem with these discussions, Trump enacted an executive order on Friday aimed at ensuring that proceeds from Venezuelan oil remain protected from being exploited in judicial suits. The order underscores the administration’s strategy to stabilize the Venezuelan economy, asserting that federal funds are pivotal for avoiding further political and economic deterioration in the nation.
The White House has signaled an intention to “run” Venezuela economically, which includes assertions of controlling the sales of millions of barrels of previously sanctioned Venezuelan oil globally. This initiative aligns with the administration’s broader goals of constructing a more favorable environment for U.S. investment.
Context & Previous Events
Until Maduro’s ousting, Venezuela had maintained significant oil industry dealings with various corporations, often complicated by state asset seizures and fluctuating political dynamics. The U.S. has a history of imposing sanctions on Venezuela, creating barriers for outside investment, which have recently intensified as talks to restore relations between the two nations have progressed.
