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US urges oil giants to invest in Venezuela amid skepticism
President Donald Trump has called for at least $100 billion in investment to revive Venezuela's oil sector, but energy executives at a White House meeting dismissed the country as currently "uninvestable" due to long-standing risks.
Executives express caution despite vast reserves
Venezuela holds some of the world's largest oil reserves, yet industry leaders warned that major reforms would be needed before committing funds. ExxonMobil CEO Darren Woods stated the country had twice seized the company's assets, making re-entry contingent on "significant changes" from past practices.
"Today it's uninvestable."
Darren Woods, ExxonMobil CEO
Trump asserts control over Venezuela's oil future
Following the US seizure of President Nicolás Maduro on January 3, Trump declared that American firms would deal directly with Washington, not Caracas. He claimed the move would lead to lower global energy prices, though analysts remain doubtful of near-term impacts.
The administration is selectively easing sanctions to allow Venezuelan oil sales, with proceeds directed to US-controlled accounts. Several oil tankers carrying sanctioned crude have already been intercepted this week.
Production challenges and mixed industry responses
Venezuela's oil output has plummeted to roughly 1 million barrels per day-less than 1% of global supply-due to sanctions, mismanagement, and underinvestment. Chevron, the last major US firm operating there, produces about a fifth of the country's output and plans to expand.
Repsol and Eni, representing Spain and Italy respectively, also attended the White House meeting. Repsol aims to triple its current 45,000 barrels per day if conditions improve. Smaller firms signaled readiness to invest, but analysts warn that large-scale commitments remain unlikely without political stability and legal protections.
Experts doubt Trump's $100bn target
David Goldwyn, a former US energy envoy, noted that ExxonMobil and Shell would require "physical security, legal certainty, and a competitive fiscal framework" before investing billions. He called Trump's $100 billion figure "fantastical," estimating that smaller firms might commit only around $50 million initially.
Claudio Galimberti, chief economist at Rystad Energy, suggested that $8-9 billion annually would be needed to triple production by 2040. He emphasized that subsidies and political stability would be essential for such investments to materialize.
"It's going to be difficult to see big commitments before we have a fully stabilized political situation."
Claudio Galimberti, Rystad Energy
