President Donald Trump has urged major US oil companies to invest at least $100 billion in Venezuela’s oil sector, a proposition that has been met with skepticism by industry leaders.
On Friday, Trump had a meeting with nearly 20 industry representatives in the White House’s East Room. He expressed his anticipation for a swift agreement to rejuvenate operations in Venezuela following the capture of leader Nicolás Maduro.
Despite Trump’s positive outlook, several executives voiced their concerns. Exxon Mobil Corp. (NYSE:XOM) CEO Darren Woods referred to Venezuela as currently “uninvestable,” citing past instances of the company’s assets being confiscated by the Venezuelan government, reports Bloomberg.
Harold Hamm of Continental Resources Inc. (NYSE:CLR), a long-time supporter of Trump, also refrained from committing to Venezuelan investment, although he showed enthusiasm about the possibility.
Energy Secretary Chris Wright singled out Chevron Corp. (NYSE:CVX), the only US major still present in Venezuela, as the “one specific pledge” from an oil company to aid in reviving the nation’s crude production.
Chevron Vice Chairman Mark Nelson confirmed the company’s readiness to significantly ramp up its output in Venezuela.
Despite the hesitant response from industry representatives, Trump remained hopeful, stating, “They’re going to be going in with hundreds of billions of dollars in drilling oil, and it’s good for Venezuela and it’s great for the United States.”
The call for investment comes at a time when Venezuela’s oil sector is in dire need of revitalization. However, the skepticism expressed by industry leaders underscores the risks associated with investing in a country with a history of asset seizure.
The response from Chevron, however, indicates that some companies may be willing to take on these risks, potentially leading to a significant boost in Venezuela’s oil production and economic recovery.
Image: Shutterstock/Kirkam
