Oil CEO Who Stood Up to Trump Has a History of Blunt Statements on Venezuela

Exxon Mobil CEO Darren Woods described Venezuela as 'uninvestable' during a January 9 White House meeting with U.S. energy executives and President Donald Trump according to Exxon's statement. Woods cited past asset seizures and a need for legal and commercial reforms before any investment could proceed as reported by CNBC. His remarks contrasted with Trump's goal of securing $100 billion in U.S. oil investments in Venezuela according to Business Standard.

Trump responded by suggesting he would likely exclude Exxon from future investments in Venezuela. 'I didn’t like Exxon’s response. You know we have so many that want it. I’d probably be inclined to keep Exxon out,' Trump said aboard Air Force One as noted by Seeking Alpha. He described Woods’ position as 'playing too cute' according to Seeking Alpha.

Chevron remains the only U.S. major actively operating in Venezuela. Chevron Vice Chairman Mark Nelson stated the company could boost production by 50% within 18 to 24 months as reported by Seeking Alpha. ConocoPhillips CEO Ryan Lance noted the company left behind $12 billion when it exited the country according to Seeking Alpha.

Why Did This Happen?

Woods emphasized that re-entering Venezuela requires durable legal protections and reforms. 'Our assets have been seized there twice, so you can imagine that getting back in a third time would require some pretty significant changes,' he said as reported by Econotimes. Venezuela nationalized Exxon and ConocoPhillips’ assets in 2007 and still owes them billions according to Tech Times.

Trump has pledged to provide investment guarantees for U.S. companies. 'We are empowered to make that deal. And you have total safety, total security,' he said according to Egyptoil-Gas. However, Woods and other executives remain cautious about re-entering without clear protections as noted by Yahoo Finance.

How Did Markets React?

Crude oil prices rose amid heightened geopolitical risks, with February Nymex crude settling at $59.12/bbl and March Brent at $63.34/bbl according to Business Insider. Energy stocks, as represented by the Energy Select Sector SPDR Fund (XLE), gained 2.2% for the week according to Marketscreener.

Exxon shares dropped 1.1% in premarket trading after Trump’s comments according to Fortune. Analysts remain divided, with some noting the refining business is undervalued and could boost cash flow according to Seeking Alpha.

What Are Analysts Watching Next?

Exxon is preparing a technical team to assess Venezuela’s oil assets if invited as reported by Seeking Alpha. The company’s 2030 production plan includes significant growth in the Permian Basin and carbon capture systems according to Seeking Alpha.

Analysts are watching for further sanctions relief and whether structural reforms in Venezuela will be implemented according to Tech Times. The outcome will determine if major investments materialize in the coming years as reported by Econotimes.

Market uncertainty over U.S. natural gas prices kept the Nymex gas contract down 7% for the week according to Tech Times. Energy analysts remain focused on Venezuela’s political and legal developments as key factors in investment decisions as reported by Econotimes.