President Donald Trump’s $100 billion plan to invest in Venezuela’s oil industry was met with a muted response from US energy executives on Friday.
While the promise to revive Venezuela’s oil industry drew praise from many in attendance at the White House meeting, no concrete pledges were made, and Exxon CEO Darren Woods went as far as to describe the country as “uninvestable” at present.
“If we look at the legal and commercial constructs and frameworks in place today in Venezuela — today, it’s uninvestable,” Woods said.
“Significant changes have to be made to those commercial frameworks, the legal system,” he continued. “There has to be durable investment protections, and there has to be change to the hydrocarbon laws in the country.”
Woods said he was nevertheless “confident” the US could help bring about the necessary changes, adding that Exxon would look to send a technical team to Venezuela to assess the state of operations.
Trump has been pushing for major US oil firms to pump money into Venezuelan energy infrastructure since the capture of Nicolás Maduro last week.
Trump, who promised companies “total safety and security” to operate in Venezuela, previously said the US could reimburse oil companies for expanding their operations in the South American nation, which has the world’s largest oil reserves.
Harold Hamm, the founder of Continental Resources and a longtime Trump supporter, appeared to dodge a question on whether his firm would be entering the country, saying it presented “challenges” but that it excited him “as an explorationist.”
Trump appeared unfazed by the notes of caution, but he reminded those present that he had “25 people that aren’t here today that are willing to take your place.”
Mark Nelson, the vice chairman of Chevron — which partners with Venezuela’s national oil company PDVSA on production projects in the country — sounded a more positive tone.
Nelson said Chevron was “committed” to the country and that it may increase production by around 50% over the next 18 to 24 months.
The oil industry had gathered with Trump and other senior figures from his administration to discuss how the US planned to move forward in Venezuela following the ouster of Maduro.
The US has said the raid on Caracas was a law enforcement operation and has indicted Maduro on drugs and weapons charges.
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