August M
Donald Trump has threatened to shut one of the world’s largest oil companies out of future energy projects in Venezuela, after its leadership publicly questioned the viability of investing in the country.
The warning underscores growing tensions between the US president and parts of the oil industry over his ambitions for Venezuela’s vast reserves.
White House fallout
According to DR News, Trump said he was “inclined” to exclude ExxonMobil from participating in US-led oil plans for Venezuela.
The comments came after ExxonMobil’s chief executive expressed scepticism following a meeting between senior oil executives and the Trump administration last week.
“I didn’t like Exxon’s response,” Trump told reporters aboard Air Force One. “They’re trying to be too smart.”
ExxonMobil is the world’s second-largest oil company and the largest based in the United States.
Venezuela ambitions
Trump’s remarks follow a dramatic shift in US policy towards Venezuela after President Nicolás Maduro was arrested and taken to the United States. Since then, Trump has openly spoken about extracting Venezuela’s oil, which includes the largest proven reserves in the world.
“If we just left the country, it would have zero percent chance of ever coming back,” Trump said at a press conference after the US operation. “We will run it properly and professionally, and we will get the best oil companies in the world to come in and invest billions of dollars.”
In a later interview with NBC News, Trump acknowledged that the plan would require enormous financial commitments.
Cool reception
On Friday, Trump convened a meeting at the White House with executives from major US oil companies. According to DR News, the president urged them to collectively invest at least $100bn to revive Venezuela’s oil sector.
The proposal received a muted response. Shortly after the meeting, ExxonMobil CEO Darren Woods said the company had no intention of returning to Venezuela, which it exited in 2007.
“We have had our assets seized there twice,” Woods said in a statement. “Entering a third time would require some quite significant changes.”
‘Uninvestable’ warning
Woods said Venezuela’s current legal and commercial environment made investment impossible. “If we look at the legal and commercial structures and frameworks that are in place in Venezuela today, it is uninvestable,” he said.
Those remarks appear to have prompted Trump’s threat to block ExxonMobil from future involvement in Venezuelan oil projects.
ExxonMobil has not publicly responded to the president’s comments.
Sources: DR News, Reuters
