Trump and oil majors clash over investing in Venezuela's heavy crude

President Trump said he would "probably be inclined to keep Exxon out" after Exxon Mobil chief Darren Woods described Venezuela as "uninvestable" at a White House event, highlighting a wider dispute over whether U.S. oil companies should invest in Venezuela. Mr. Trump has promised that U.S.

oil companies would spend $100 billion in Venezuela after the ouster of President Nicolás Maduro. The disagreement reflects opposing priorities: Mr. Trump wants lower oil prices and heavier investment in Venezuela, while the leaders of the oil majors are focused on economizing on investment, reducing risk and returning cash to shareholders.

Vicki Hollub of Occidental said, "We’re not going to aggressively put lots of extra barrels into an oversupplied market," and Chevron’s Mike Wirth said the company had become better at "killing things earlier." The article says the two sides are at an impasse and that the administration will either create incentives for investment or punish companies for holding out.

Technically and financially, Venezuela presents challenges: its oil is heavy and sulfurous, requiring dilution and expensive local upgrading before refining, and production fell 64 percent from 2014 to 2024. For much of the past decade majors prioritized quick-payback North American shale; Rystad Energy data cited in the piece put 2024 break-even costs at $45 a barrel for North American shale, $43 for offshore deepwater, $37 for offshore shelf and $27 for onshore Middle East.

Key Topics

Business, Donald Trump, Exxon Mobil, Chevron, Occidental Petroleum, Venezuela