Summary
Exxon CEO Darren Woods told President Donald Trump that investing in Venezuela's oil industry is currently not advisable without major legal and commercial changes. Although Venezuela has large oil reserves, the current infrastructure and laws make it difficult for companies to justify investments. U.S. oil companies are cautious about committing to significant investments in Venezuela until these issues are addressed.
Key Facts
- Exxon CEO Darren Woods met with President Trump and called Venezuela's oil sector "uninvestable" without changes.
- Venezuela has the largest known oil reserves, but infrastructure is in poor condition.
- U.S. captured Venezuelan leader Nicolas Maduro, hoping to boost investment in the country's oil industry.
- U.S. oil companies, including Exxon, Chevron, and ConocoPhillips, discussed investments but need better legal and commercial conditions.
- Chevron, the only major U.S. company still in Venezuela, plans to increase production by 50% with state firm PDVSA.
- Smaller firms may increase oil production by restarting small projects and accessing undeveloped fields.
- Experts suggest that gradual investment in smaller projects might be a more feasible initial step.
