President Donald Trump’s meeting with oil industry executives focused on extolling Trump’s actions in Venezuela, yet lacked firm commitments from major U.S. oil companies to invest substantially in revitalizing the country’s faltering oil industry.
Following a U.S. military operation that captured Venezuela’s president, Trump convened with top oil executives to discuss the nation’s vast oil reserves.
Close to 20 industry CEOs attended the meeting with Trump, Vice President J.D. Vance, Secretary of State Marco Rubio, Energy Secretary Chris Wright, and Interior Secretary Doug Burgum.
“We’ll discuss how American companies can help rapidly rebuild Venezuela’s deteriorating oil industry,” Trump stated at the meeting’s outset.
Trump emphasized working with Venezuela to determine which companies would be permitted to operate there, suggesting deals would be concluded promptly.
However, oil executives remained skeptical. Exxon CEO Darren Woods pointed out the current legal and commercial frameworks in Venezuela render it “uninvestable,” necessitating significant changes for investment protection.
Exxon has previously had assets seized in Venezuela, resulting in billions of dollars in losses, Woods noted, emphasizing the long-term nature of such investments.
Woods did not dismiss Exxon’s return, suggesting necessary reforms could make it viable, highlighting the importance of deploying a technical team to assess the situation.
Executives from Chevron, Exxon, ConocoPhillips, and others attended the meeting, which was live-streamed with the press present.
Venezuela, with the world’s largest oil reserves estimated at 303 billion barrels, presents a challenging investment opportunity for companies. Past asset seizures, such as those in 2007 under Hugo Chavez, have made companies cautious about operating in Venezuela.
Energy consulting firm Rystad Energy estimates that restoring Venezuela’s oil production to pre-Chavez levels would require $30 to $35 billion over two to three years and $184 billion over 14 years.
Trump aims for $100 billion in oil company investments, but this could entail significant environmental costs. Venezuelan oil, termed some of the “dirtiest” oil, is extra-heavy crude requiring extensive refining, primarily in Black communities in Texas and Louisiana.
The American Petroleum Institute expressed openness to collaborating with the White House but stressed that investment decisions rest with individual companies, considering factors like security and market stability.
Trump indicated that reduced oil prices for Americans would be a “very big factor” in this initiative. However, current crude oil prices are already low, reflecting a global oversupply relative to demand.
Original Story at insideclimatenews.org