Trump warns ExxonMobil could be barred from operating in Venezuela

ExxonMobil Faces Barriers to Returning to Venezuela

Over the past five decades, ExxonMobil has exited Venezuela twice due to the nationalization of its oil holdings by the government. Now, President Donald Trump appears poised to maintain this status quo.

On Sunday, Trump signaled his intention to prevent ExxonMobil from resuming operations in Venezuela. This announcement came just two days after ExxonMobil CEO Darren Woods made frank comments at the White House, labeling Venezuela as "uninvestable" unless sweeping reforms are made to its political and legal systems.

Speaking to journalists aboard Air Force One, Trump remarked, "I wasn't pleased with Exxon's reaction. I would probably lean toward keeping Exxon out. I didn't like their response. They're being too clever."

The Trump administration has been actively encouraging Western oil companies to invest in Venezuela's struggling oil industry following the U.S.-backed removal of Nicolás Maduro. Despite these efforts, major oil firms have shown little interest, citing high risks and costs, especially with oil prices remaining low, making large-scale investments unattractive.

This hesitancy was evident during a Friday meeting at the White House, where Trump met with nearly two dozen oil industry leaders, including representatives from Chevron, ExxonMobil, and ConocoPhillips. European companies such as Repsol and Eni were also present. However, it was Woods' direct and prepared statements that highlighted the significant disconnect between the administration and the oil giants.

Woods explained, "Our assets have been expropriated there twice. So, considering a third entry would require substantial changes from what we've experienced in the past and what currently exists."

He continued, "Given the current legal and business frameworks in Venezuela, the country is simply not a viable place for investment."

Later that evening, after leaving the White House, Trump told reporters, "It was a productive meeting with oil executives. We've essentially reached an agreement."

The president has offered assurances of protection to energy companies operating in Venezuela, though he has not specified whether this would involve the use of U.S. military forces.

On Monday morning, ExxonMobil's stock experienced a slight decline, dropping about 1% to trade at $124 per share.