Trump 'Inclined' To Keep Exxon Mobil Out Of Venezuela: 'Didn't Like Their Response'

President Donald Trump is contemplating excluding Exxon Mobil Corp. (NYSE:XOM) from the initiative to encourage U.S. companies to invest in Venezuela after the oil giant’s CEO labeled the South American nation as “uninvestable.”

Trump Snubs Exxon, Chevron Sees Upside

Trump expressed his dissatisfaction with Exxon Mobil’s response to his investment drive during a meeting with U.S. oil industry leaders at the White House. Trump told reporters on Air Force One en route to Washington, D.C., from Palm Beach, Florida, “I’d probably be inclined to keep Exxon out. I didn’t like their response. They’re playing too cute.”

When asked about backstops or guarantees that the administration is willing to provide the oil companies, Trump told “There’s going to be no problem.”

On the other hand, Chevron Corp. (NYSE:CVX), the only U.S. oil company with operations in Venezuela, expressed optimism about the country’s potential. Chevron’s Vice Chair Mark Nelson stated that the company could increase production by about 50% in the next 18 to 24 months by leveraging existing resources.

Oil Majors Skeptical Of Venezuela Push

Trump had urged major U.S. oil companies to invest at least $100 billion in Venezuela’s oil sector during the meeting. This call was met with skepticism by industry leaders, with Exxon CEO Darren Woods specifically referring to Venezuela as “uninvestable.” Exxon cited reforms in commercial frameworks, a better legal system and protections for investment in Venezuela.

Last week, Treasury Secretary Scott Bessent stated that oil giants with large corporate boards are moving “slowly” and are “not interested” in the Latin American country.

Exxon Mobil’s potential exclusion from the investment drive could have significant implications for the company, given its recent announcement of expected profit reductions due to falling oil prices. The company had projected that changes in oil prices would reduce its upstream results by $800 million to $1.2 billion in the fourth quarter compared to the third quarter.

Benzinga's Edge Rankings place Exxon in the 49th percentile for momentum and the 82nd percentile for value, reflecting its mixed performance in both areas. Check the detailed report here. 

Price Action: Over the past year, Exxon Mobil stock climbed 14.02%, as per data from Benzinga Pro. On Friday, it climbed 1.38% higher to close at $124.61.

Photo Courtesy: Evan El-Amin on Shutterstock.com

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.