President Donald Trump said he may prevent ExxonMobil from investing in Venezuela after the company’s chief executive told him the country was “uninvestable” during a White House meeting, escalating tensions as the administration seeks to attract $100 billion in private oil sector investment to rebuild the nation’s energy industry.
“I didn’t like Exxon’s response. I’d probably be inclined to keep Exxon out. I didn’t like their response. They’re playing too cute,” Trump told reporters aboard Air Force One on Sunday.
CEO Demands “Significant Changes” Before Investment
Most oil executives attending Friday’s White House meeting delivered optimistic assessments about reviving Venezuela’s oil sector, which has collapsed to below 1 million barrels per day from decades of mismanagement, corruption and US sanctions. But Darren Woods, ExxonMobil’s chief executive, struck a notably skeptical tone.
“We’ve had our assets seized there twice and so you can imagine to re-enter a third time would require some pretty significant changes from what we’ve historically seen here and what is currently the state,” Woods told the president. “If we look at the legal and commercial constructs, frameworks in place today in Venezuela, today it’s uninvestable.”
When Trump pressed him, Woods agreed to send a technical team to Venezuela within weeks to assess conditions and said he was “confident” the necessary changes “can be put in place.” ExxonMobil did not immediately respond to requests for comment.
Woods’ cautious stance highlights how major energy companies remain reluctant to commit significant capital to Venezuela despite Trump’s push to rebuild the country’s oil industry and “benefit the United States.” The Financial Times reported last week that oil companies are unlikely to make major investments without legal, financial and security guarantees from Washington.
Trump Promises Safety, Dismisses Past Problems
When asked about guarantees for oil companies, Trump insisted: “They’re going to be safe, that there’s going to be no problem and there won’t be, it’s not going to be a problem. They had problems in the past because they didn’t have Trump as a president. They had stupid people.”
The president said many oil executives were “really interested” in the Venezuela opportunity. Chevron, the only US company currently operating in Venezuela, indicated it could increase production by 50 percent within 18 to 24 months by expanding operations that currently pump about 240,000 barrels per day.
The White House meeting occurred less than a week after Trump launched an operation to capture Venezuelan strongman Nicolás Maduro in Caracas and claim control of the country’s natural resources.
Can Personal Guarantees Override Institutional Risk?
Trump’s threat to exclude ExxonMobil exposes a fundamental tension in his Venezuela strategy: major corporations can’t operate on personal assurances from a president who’ll eventually leave office. Woods is being realistic. Venezuela has seized Exxon’s assets twice, and without concrete legal frameworks protecting investments, the risk remains enormous regardless of who occupies the White House.
This situation mirrors challenges in cryptocurrency adoption by traditional institutions. Just as oil companies need robust legal protections before deploying billions in hostile jurisdictions, institutional investors require clear regulatory frameworks before committing significant capital to digital assets. Personal promises from political leaders, however well-intentioned, can’t substitute for durable legal and commercial structures.
The Venezuela oil situation actually strengthens the case for blockchain-based solutions in resource-rich but institutionally weak countries. Smart contracts and tokenized ownership could provide transparency and immutable property rights that traditional legal systems in places like Venezuela have failed to deliver. If oil extraction rights or production revenues were recorded on public blockchains, it would be far harder for governments to simply seize assets or repudiate contracts.
Trump’s frustration with Exxon shows he doesn’t fully grasp why corporations demand institutional certainty over personal guarantees. The same principle applies to crypto regulation—clear, predictable rules matter more than friendly politicians making vague promises about supporting the industry.
