Summary:
Trump says he may block Exxon from investing in Venezuela
CEO Darren Woods called the country “uninvestable”
Exxon cited past asset seizures and weak legal protections
Tensions complicate US efforts to revive Venezuela’s oil sector
Highlights gap between political goals and commercial risk
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Trump threatens to block Exxon from Venezuela after CEO brands country ‘uninvestable’
US President Donald Trump signalled a potential rift with America’s largest oil producer after saying he may prevent Exxon Mobil from investing in Venezuela, following blunt comments by the company’s chief executive questioning the country’s investment viability.
Speaking to reporters aboard Air Force One on Sunday, Trump said he was unhappy with Exxon’s stance after CEO Darren Woods described Venezuela as “uninvestable” during a White House meeting last week. Trump said Exxon was “playing too cute” and suggested he would be inclined to exclude the company from any future reopening of Venezuela’s oil sector to US firms.
The comments represent a setback for Trump’s broader push to persuade American energy companies to commit billions of dollars to revitalise Venezuela’s oil industry following years of sanctions, underinvestment and operational decline. Washington has been exploring ways to leverage US corporate involvement to stabilise output while exerting political influence over Caracas.
Woods’ remarks reflected long-standing industry concerns. Exxon has twice had assets expropriated in Venezuela, most notably during the nationalisations under former president Hugo Chávez. Woods told Trump that re-entering the country a third time would require “significant changes,” including durable legal protections for foreign investors and reforms to Venezuela’s hydrocarbons law.
“If you look at the legal and commercial frameworks in place today, it’s uninvestable,” Woods said, arguing that without structural reform, capital deployment would expose shareholders to unacceptable political and legal risk.
Trump’s reaction underscores the tension between political objectives and commercial realities. While the administration is eager to draw US firms back into Venezuela as part of a broader reset in relations, major oil companies remain wary of regulatory instability, contract sanctity and the risk of renewed state intervention.
Exxon did not immediately respond to Trump’s remarks. For markets, the episode highlights the limits of US policy leverage over corporate investment decisions and reinforces scepticism that Venezuela can rapidly attract large-scale foreign capital without deep legal and institutional reform.
