Oil Executives Resist Push by Trump to Invest in Venezuela

President Trump called on major US and European oil companies to sink at least $100 billion into Venezuela's energy sector, but the industry leaders he met at the White House on Friday signaled no such commitment. Some smaller oil and trading firms have been eager to expand in Venezuela, but the large companies capable of significantly raising production— including Exxon Mobil and ConocoPhillips—remain wary, the New York Times reports. "We've had our assets seized there twice, and so you can imagine to re-enter a third time would require some pretty significant changes," Exxon CEO Darren Woods told the president. "Today it's uninvestable."

The White House said it invited oil executives from 17 companies, including Chevron, which still operates in Venezuela, as well as Exxon and ConocoPhillips, which both had oil projects in the country that were lost as part of a 2007 nationalization of private businesses, per the AP. Woods said Exxon would consider sending a team to the country within weeks if it receives security guarantees and legal changes that provide "durable investment protections." Other executives, including Trump ally and oil producer Harold Hamm, also expressed interest but stopped short of firm promises, noting Venezuela's "challenges."

Consultancy Rystad Energy estimates that simply holding Venezuela's output at about 1 million barrels a day would cost more than $50 billion over 15 years, while pushing production above 1.4 million barrels a day could require more than $120 billion through 2040. Chevron said it could lift its output there by roughly 50% in the next two years, per the Times. After Chevron Vice Chairman Mark Nelson spoke, Trump warned: "If we make a deal, you will be there a long time. If we don't make a deal, you won't be there at all." Trump said his administration could offer security guarantees but not direct funding, adding that oil majors would be spending "their money, not the government's money"—possibly with credit support from the US Export-Import Bank.