Washington,
US energy giant ExxonMobil has said Venezuela remains an “uninvestable” destination for large-scale oil projects, resisting renewed pressure from President Donald Trump for American companies to return to the South American country’s energy sector.
The company’s Chief Executive, Darren Woods, made the assessment during a meeting with President Trump and senior energy industry leaders in Washington, according to people familiar with the discussions. Woods said ExxonMobil could not commit major capital under current conditions, pointing to legal uncertainty, policy instability and Venezuela's long history of state intervention in the oil industry.
From a commercial perspective, Woods said, the existing framework does not support the kind of long-term, capital-intensive investment required for major oil developments. Before ExxonMobil could reconsider operating in the country, he added, fundamental reforms would be necessary.
Venezuela holds the world’s largest proven oil reserves, but its energy sector has been in prolonged decline. Years of mismanagement, underinvestment, international sanctions, and political turmoil have sharply reduced output, leaving it far below the levels seen in the early 2000s. Much of the country’s oil infrastructure is outdated or in disrepair, requiring significant funding and technical expertise to restore.
President Trump has repeatedly urged US energy companies to take advantage of what he describes as a “historic opportunity” following recent political changes in Venezuela. The White House believes that increased oil production could help stabilise global energy markets, support US energy security, and reshape Venezuela’s economy after years of crisis.
According to sources, Trump encouraged executives to move quickly and suggested that Washington would support firms willing to invest. Industry leaders, however, cautioned that oil projects typically span decades and rely heavily on predictable regulations, enforceable contracts, and stable currency arrangements—conditions that investors say are currently lacking in Venezuela.
ExxonMobil’s caution is shaped by its past experience in the country. The company exited Venezuela after its assets were nationalised under former president Hugo Chávez, triggering lengthy international arbitration disputes. Energy analysts say those episodes continue to weigh heavily on investor confidence.
Other international oil companies have taken a more measured stance. Chevron has signalled that it could expand its activities in Venezuela, where it has maintained limited operations under US sanctions waivers, if legal and political conditions improve. Several European and Asian firms are also monitoring developments but have so far avoided making firm investment commitments.
Energy specialists say rebuilding Venezuela’s oil sector would require tens of billions of dollars, advanced technology and years of sustained work, even under favourable circumstances. They also note that global oil supplies are currently relatively ample, reducing the immediate commercial incentive for companies to pursue high-risk projects.
Despite its firm assessment, ExxonMobil said it would continue to monitor the situation. Woods indicated the company remains open to dialogue and would closely watch for any meaningful reforms to Venezuela’s energy laws, investment protections and governance standards.
For now, however, ExxonMobil’s position is clear: vast oil reserves alone are not enough. Without credible, long-term changes, Venezuela is unlikely to attract major US investment.
The debate highlights a wider tension between political ambition and commercial reality, as governments seek to use energy resources for strategic influence while investors prioritise stability, transparency and sustainable returns.
