Uninvestable: Trump's $100-billion Venezuela pitch is a no-deal for oil giants
Trump urged oil giants to invest in Venezuela, promising full US protection and control, as Washington moves to sell sanctioned crude and unlock $100 billion in private energy investment.
US President Donald Trump urged major oil companies to commit at least $100 billion to revive Venezuela’s oil sector, promising sweeping security guarantees and a US-controlled framework for investment, but faced a cautious response from industry leaders, with Exxon Mobil’s chief executive warning the country is currently “uninvestable”.
Addressing oil executives at the White House, Trump said Washington would effectively take charge of Venezuela’s oil sales and insulate companies from the political and legal risks that have plagued the country for decades. “You have total safety. You’re dealing with us directly and not dealing with Venezuela at all,” he told the gathering, which included executives from Exxon, Chevron, Shell, Repsol and Eni.
The pitch followed a dramatic US military operation earlier this month that resulted in the capture of former Venezuelan president Nicolas Maduro. Since then, the Trump administration has portrayed Venezuela as newly open for business, arguing that regime change has fundamentally altered the risk profile of investing in the country’s vast oil reserves.
Trump said the US would oversee the sale of between 30 million and 50 million barrels of previously sanctioned Venezuelan crude and manage global sales indefinitely. He claimed that major American oil firms would invest at least $100 billion of their own capital in rebuilding Venezuela’s oil production and infrastructure, with the government providing protection rather than funding.
“Our giant oil companies will be spending at least $100 billion of their money, not the government’s money,” Trump said, flanked by Vice President JD Vance and Secretary of State Marco Rubio. He added that Washington had a historical claim to Venezuela’s oil industry, saying US companies had built it decades ago before assets were nationalised.
Trump also said the interim government in Caracas, now led by Delcy Rodrguez, appeared aligned with US interests, stressing that Washington wanted to keep Russia and China out of the country’s energy sector. He said security would be ensured without deploying US troops, relying instead on cooperation with local authorities and private security arrangements.
Despite the upbeat rhetoric, oil executives struck a far more guarded tone. Exxon Mobil chief executive Darren Woods said Venezuela’s long record of asset seizures and political instability made re-entry highly risky. “We have had our assets seized there twice, and so you can imagine to re-enter a third time would require some pretty significant changes,” Woods said. “Today it’s uninvestable.”
While executives acknowledged Venezuela’s vast reserves as an enticing opportunity, no major financial commitments were announced. Industry leaders said substantial changes would be required, including legal certainty, physical security and a competitive fiscal regime.
Chevron, the last major US oil company still operating in Venezuela, said it expected to bolster production from its existing operations. Spain’s Repsol and Italy’s Eni, both of which maintain a presence in the country, said there could be scope to expand output under the right conditions, with Repsol suggesting it could triple production over the next few years.
Trump said his administration would decide which companies would be allowed to operate and confirmed that the White House is working to selectively roll back US sanctions that have restricted Venezuelan oil sales. US officials have also made clear that Washington intends to retain control over sales proceeds, depositing revenues into US-controlled accounts to maintain leverage over the interim government.
On Friday, Trump signed an executive order seeking to prevent US courts from seizing Venezuelan oil revenues held in American Treasury accounts, arguing that such action would interfere with US foreign policy and efforts to stabilise the country.
Venezuela’s oil production, once among the world’s largest, has fallen to around one million barrels per day, less than 1% of global supply, due to years of underinvestment, mismanagement and sanctions. Analysts said meaningfully boosting output would require sustained investment and political stability.
Energy analysts noted that while Trump’s $100 billion figure could transform production if realised, companies are unlikely to commit on that scale without clearer guarantees. “They are being as supportive as they can, without committing actual dollars,” said David Goldwyn, president of Goldwyn Global Strategies and a former US State Department energy envoy.
Rystad Energy estimates it would take $8 billion to $9 billion in new investment each year to triple Venezuela’s oil output by 2040. Its chief economist, Claudio Galimberti, said large-scale commitments would depend on subsidies and a fully stabilised political situation, adding that US consumers should not expect Venezuelan oil to lower prices in the near term.
For now, Trump’s ambition to unlock Venezuela’s oil wealth has highlighted a stark divide between the White House’s geopolitical push and an industry still wary of a country scarred by decades of upheaval.
US President Donald Trump urged major oil companies to commit at least $100 billion to revive Venezuela’s oil sector, promising sweeping security guarantees and a US-controlled framework for investment, but faced a cautious response from industry leaders, with Exxon Mobil’s chief executive warning the country is currently “uninvestable”.
Addressing oil executives at the White House, Trump said Washington would effectively take charge of Venezuela’s oil sales and insulate companies from the political and legal risks that have plagued the country for decades. “You have total safety. You’re dealing with us directly and not dealing with Venezuela at all,” he told the gathering, which included executives from Exxon, Chevron, Shell, Repsol and Eni.
The pitch followed a dramatic US military operation earlier this month that resulted in the capture of former Venezuelan president Nicolas Maduro. Since then, the Trump administration has portrayed Venezuela as newly open for business, arguing that regime change has fundamentally altered the risk profile of investing in the country’s vast oil reserves.
Trump said the US would oversee the sale of between 30 million and 50 million barrels of previously sanctioned Venezuelan crude and manage global sales indefinitely. He claimed that major American oil firms would invest at least $100 billion of their own capital in rebuilding Venezuela’s oil production and infrastructure, with the government providing protection rather than funding.
“Our giant oil companies will be spending at least $100 billion of their money, not the government’s money,” Trump said, flanked by Vice President JD Vance and Secretary of State Marco Rubio. He added that Washington had a historical claim to Venezuela’s oil industry, saying US companies had built it decades ago before assets were nationalised.
Trump also said the interim government in Caracas, now led by Delcy Rodrguez, appeared aligned with US interests, stressing that Washington wanted to keep Russia and China out of the country’s energy sector. He said security would be ensured without deploying US troops, relying instead on cooperation with local authorities and private security arrangements.
Despite the upbeat rhetoric, oil executives struck a far more guarded tone. Exxon Mobil chief executive Darren Woods said Venezuela’s long record of asset seizures and political instability made re-entry highly risky. “We have had our assets seized there twice, and so you can imagine to re-enter a third time would require some pretty significant changes,” Woods said. “Today it’s uninvestable.”
While executives acknowledged Venezuela’s vast reserves as an enticing opportunity, no major financial commitments were announced. Industry leaders said substantial changes would be required, including legal certainty, physical security and a competitive fiscal regime.
Chevron, the last major US oil company still operating in Venezuela, said it expected to bolster production from its existing operations. Spain’s Repsol and Italy’s Eni, both of which maintain a presence in the country, said there could be scope to expand output under the right conditions, with Repsol suggesting it could triple production over the next few years.
Trump said his administration would decide which companies would be allowed to operate and confirmed that the White House is working to selectively roll back US sanctions that have restricted Venezuelan oil sales. US officials have also made clear that Washington intends to retain control over sales proceeds, depositing revenues into US-controlled accounts to maintain leverage over the interim government.
On Friday, Trump signed an executive order seeking to prevent US courts from seizing Venezuelan oil revenues held in American Treasury accounts, arguing that such action would interfere with US foreign policy and efforts to stabilise the country.
Venezuela’s oil production, once among the world’s largest, has fallen to around one million barrels per day, less than 1% of global supply, due to years of underinvestment, mismanagement and sanctions. Analysts said meaningfully boosting output would require sustained investment and political stability.
Energy analysts noted that while Trump’s $100 billion figure could transform production if realised, companies are unlikely to commit on that scale without clearer guarantees. “They are being as supportive as they can, without committing actual dollars,” said David Goldwyn, president of Goldwyn Global Strategies and a former US State Department energy envoy.
Rystad Energy estimates it would take $8 billion to $9 billion in new investment each year to triple Venezuela’s oil output by 2040. Its chief economist, Claudio Galimberti, said large-scale commitments would depend on subsidies and a fully stabilised political situation, adding that US consumers should not expect Venezuelan oil to lower prices in the near term.
For now, Trump’s ambition to unlock Venezuela’s oil wealth has highlighted a stark divide between the White House’s geopolitical push and an industry still wary of a country scarred by decades of upheaval.