President Trump met with oil executives Friday to discuss potential investments in Venezuela and announced a plan to control Venezuelan oil sales. The president is seeking at least $100 billion in investment from U.S. oil companies, but securing firm commitments proved challenging as companies expressed concerns about risk and profitability.
Trump Seeks Oil Investment in Venezuela
Trump met with oil executives at the White House, urging them to invest in Venezuela’s largely undeveloped oil reserves. He stated that if U.S. companies don’t pursue the opportunity, others will.
“If we make a deal, you’re going to be there a long time. If we don’t make a deal, you won’t be there at all,” Trump said, according to audio of the meeting.
Concerns Over Past Seizures and Political Risk
Executives expressed interest in Venezuela’s oil resources, but stopped short of making firm financial commitments. Several companies cited past experiences where the Venezuelan government forcibly renegotiated contracts, resulting in asset seizures.
Darren Woods, CEO of ExxonMobil, stated the company’s assets had been seized in Venezuela twice before. “You can imagine to reenter a third time would require some pretty significant changes from what we’ve historically seen here and what is currently the state,” Woods said, adding that Venezuela is currently “uninvestable.”
Terms of Potential Investment
Trump promised “total safety, total security” for companies operating in Venezuela, though the specifics of that security were not detailed. He also indicated that companies should not expect to recover funds lost from previous asset seizures and that no financial guarantees would be offered if future investments fail.
Analysts note that the actual cost of developing Venezuela’s oil infrastructure is uncertain. John Auers, an oil industry analyst with over 45 years of experience, said, “You have to get boots on the ground to see exactly what shape the existing infrastructure is in. And nobody knows that right now. So all the numbers I’ve seen tossed around about how much it cost are basically wild guesses.”
The U.S. is already redirecting existing Venezuelan oil production through American refineries. Chevron has indicated a willingness to increase production by 50%, while smaller companies expressed interest, though they lack the financial capacity of larger firms.
Long-term oil demand, influenced by the growth of electric vehicles and China’s energy policies, also presents uncertainty for potential investors.
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