Exxon Mobil CEO Darren Woods stated Friday that Venezuela must transition to democracy to ensure that funding within the South American nation’s dilapidated oil business to make sense.
President Donald Trump is pressuring oil corporations to speculate no less than $100 billion in Venezuela to rebuild the nation’s oil business after the U.S. captured former President Nicolás Maduro on Jan. 3.
However Woods informed Trump on the White Home on Jan. 9 that Venezuela is “uninvestable” in its present state. The Exxon CEO’s blunt evaluation angered the president who threatened to chop the oil main out of any future funding within the nation.
Woods stood by his evaluation in an interview with CNBC on Friday. He stated the federal government in Caracas must make main reforms for Exxon to significantly take into account returning to Venezuela.
“These priorities begin with one, stabilizing the nation,” Woods informed CNBC’s “Squawk Field.” “Second is to kick-start the economic system and attempt to get better a few of the injury that is been finished over the many years of abuse that the dictators introduced in, after which in the end to transition into consultant authorities.”
The Trump administration has not laid out a transparent plan for Venezuela to carry elections and transition to a democratic authorities. Senior administration officers have stated they’re centered proper now on stabilizing the nation and enhancing its economic system by oil gross sales.
The U.S. has been working with Venezuela’s appearing president, Delcy Rodriguez, who’s a long-standing insider within the authoritarian regime that former President Hugo Chavez constructed. The cooperation with Rodriguez has raised concern amongst some observers that the present regime may stay in place as long as it meets the Trump administration’s calls for on oil.
Exxon exited Venezuela in 2007 after its belongings have been seized by the Chavez regime. It has billions of {dollars} in excellent claims in opposition to Caracas from the nationalization.
“Frankly, from our perspective, there is a precept that we stand on that in the event you do not uphold the sanctity of the contracts, in the event you select to as a substitute to steal the investments that we made and undermine the work that we have been doing, that we won’t proceed to work with you,” Woods stated.
Trump informed oil business CEOs on the White Home assembly that his administration is just not planning to drive Venezuela to play claims from the 2007 nationalization.
“We’re not going to take a look at what individuals misplaced previously, as a result of that was their fault,” Trump stated on Jan. 9. “That was a unique president. You are going to make some huge cash, however we’re not going to return.”
Venezuela, a founding member of OPEC, is believed to have the most important crude oil reserves on the planet however its vitality infrastructure is in a state of disrepair.
Funding to restore Venezuela’s infrastructure may show financially difficult proper now as a surplus of crude oil on the planet has depressed costs. Oil costs in 2025 posted their steepest annual loss since 2020 as OPEC+ elevated manufacturing and the U.S. continued to pump oil at a powerful clip.
Earlier Friday, Exxon reported fourth-quarter outcomes that beat Wall Avenue estimates, however each revenue and income have been down from the year-ago interval resulting from weak crude costs. Notably, Exxon achieved its highest full-year web manufacturing in additional than 40 years at 4.7 million barrels per day. It pumped 4.98 million bpd within the quarter with its belongings within the Permian Basin and Guyana setting output information for the interval.
Exxon’s competitor, Chevron, is the one U.S. oil main working in Venezuela underneath a particular license issued by the Treasury Division. Chevron says it may well enhance manufacturing in Venezuela by 50% over the subsequent 18 to 24 months.
Whereas Exxon’s inventory was down greater than 1% after reporting its outcomes, its shares have had a powerful begin to the 12 months. The inventory has gained almost 16% in 2026, outpacing the S&P 500’s 1.6% bump.
