The White House is drawing a hard line in the sand for US energy majors.
Following a meeting where ExxonMobil CEO Darren Woods publicly called Venezuela “uninvestable” under current laws, President Trump has threatened to block the company from participating in the country’s reconstruction entirely.
🗣️ THE FLASHPOINT:
- The Comment: Woods told the President that after having assets seized twice, re-entering a third time would require “significant changes” to hydrocarbon laws. He bluntly stated: “If we look at the legal and commercial constructs… it’s uninvestable.”
- The Reaction: President Trump, seeking $100B in immediate commitments to rebuild the post-Maduro economy, fired back on Air Force One: “I didn’t like Exxon’s response. I’ll probably be inclined to keep Exxon out… They’re playing too cute.”
⚖️ THE NEW RULES OF ENGAGEMENT: This exchange signals a shift to a “Pay to Play” geopolitical strategy:
- Direct Control: Trump explicitly told CEOs: “You’re dealing with us directly. You’re not dealing with Venezuela at all.”
- Clean Slate Policy: Trump dismissed ConocoPhillips’ concerns about past debts (~$13B owed), stating: “We’re not going to look at what people lost in the past because that was their fault.”
- Asset Protection: In a move to centralize control, Trump signed an executive order blocking creditors from seizing Venezuelan oil revenue held in US Treasury accounts.
💡 ANALYST TAKEAWAY: The message to the energy sector is clear: Loyalty over Legalism. By threatening to ban Exxon, the Administration is creating a massive opportunity for Chevron (which committed to an immediate production bump) and potentially smaller, more aggressive independents to seize market share. Exxon’s fiduciary caution is clashing with the White House’s political timeline—and in this regime, the political timeline wins.
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👇 Energy Leaders: Is it fiduciary negligence to invest in Venezuela without legal reform, or strategic negligence to miss the boat because of it?