Trump urges $100 billion in oil investment in Venezuela, but Exxon and other companies claim it remains 'uninvestable' unless significant reforms are made

Trump Proposes Major Oil Investment in Venezuela

During a White House meeting with leading oil executives on January 9, former President Donald Trump announced that American and select European oil companies are prepared to inject at least $100 billion into Venezuela. The goal, he said, is to swiftly revitalize the nation’s struggling oil sector and generate significant economic gains.

However, top executives from ExxonMobil and ConocoPhillips expressed reservations, emphasizing that substantial legal and security reforms are essential before they can consider long-term investments in Venezuela.

Exxon’s Chairman and CEO, Darren Woods, described the current investment climate in Venezuela as untenable, stating, “Major changes are needed in the legal and commercial frameworks, along with robust protections for investors.” While Woods indicated that Exxon could dispatch a technical team to Venezuela within two weeks to evaluate conditions, he stopped short of making any firm commitments. He voiced optimism that U.S. and Venezuelan authorities could collaborate on the necessary reforms.

Woods also highlighted Exxon’s history in Venezuela, noting that the company’s assets had been seized twice, most recently in 2007. He remarked that returning would require significant improvements compared to past experiences.

Trump has cited the 2007 expropriation of assets from Exxon and Conoco as justification for recent military actions and the arrest of Venezuelan leader Nicolás Maduro, as well as for allegations of drug and human trafficking. He has repeatedly referred to these expropriations as the largest theft in U.S. history.

Concluding the public portion of the meeting, Trump stated, “We’re going to begin negotiating the terms of a deal. We need these companies to invest and recover their funds quickly, after which the profits can be shared among Venezuela, the U.S., and the companies. I believe it’s a straightforward formula that will yield great success.”

Cautious Optimism from Oil Industry Leaders

Trump urged executives like Woods to prioritize both speed and quality in their efforts. Mark Nelson, Vice Chairman of Chevron—currently the only U.S. oil producer operating in Venezuela under a special license—said the company could boost its output by 50% within two years as an initial step. This would raise Venezuela’s daily oil production from nearly 1 million barrels to just over 1.1 million barrels, a modest increase for a country that once produced almost 4 million barrels a day.

Chevron’s Unique Position and Industry Challenges

Energy analysts view Chevron, which operates in partnership with Venezuela’s state oil company PDVSA, as best positioned to benefit from any resurgence due to its established presence and infrastructure. Other companies remain wary. Nelson affirmed Chevron’s commitment to Venezuela’s present and future, expressing pride in helping the country rebuild.

According to Rystad Energy, doubling Venezuela’s current oil output could take until 2030 and require around $110 billion in investment. Restoring production to levels seen in 2000 would take even longer and cost approximately $185 billion.

Ryan Lance, Chairman and CEO of ConocoPhillips, echoed the need for sweeping reforms before considering major investments. Conoco remains Venezuela’s largest creditor from past expropriations. Lance suggested that a comprehensive overhaul of Venezuela’s energy sector, including PDVSA, could unlock new opportunities.

Trump told Lance that companies would start fresh, with no compensation for previous losses—Conoco’s write-offs alone total about $12 billion. When asked about potential safeguards for investors, Trump acknowledged the risks but assured that the U.S. government would provide support to facilitate long-term involvement.

Growing Interest Across the Oil Sector

European oil giants, including Italy’s Eni and Spain’s Repsol, both of which have joint ventures in Venezuela, expressed interest in expanding their investments and increasing production. U.S. independents like Hilcorp and Armstrong Oil & Gas also signaled their willingness to participate.

Shell CEO Wael Sawan mentioned the company might invest several billion dollars in Venezuela. Leading oilfield service providers, such as Halliburton and SLB (which currently works with Chevron in Venezuela), also indicated plans to expand their activities.

Despite the enthusiasm, Dan Pickering of Pickering Energy Partners noted that much of the discussion was supportive of Trump’s agenda, with Exxon providing a more realistic perspective. Pickering observed that while interest is high, companies remain hesitant to commit substantial funds to a volatile environment. He predicted Venezuela could increase output by 50% within three years, though this would still fall short of historic highs. Many U.S. oil firms view new Venezuelan production as competition that could drive down prices and profits, particularly for American shale producers.

For Trump, however, increased Venezuelan oil means lower gasoline prices for U.S. consumers—a key priority.

U.S. Refineries and Venezuelan Crude

Trump reiterated that the U.S. plans to import at least 30 million barrels of Venezuelan crude to Gulf Coast refineries as part of a broader agreement. The proceeds from these sales would be managed by the White House in external accounts, with most funds returned to Venezuela contingent on government cooperation.

Several major Gulf Coast refineries are equipped to process Venezuela’s heavy crude. Executives from Valero Energy and Marathon Petroleum confirmed their capacity to handle increased volumes of Venezuelan oil.

This article was originally published on Fortune.com.