Trump Signals Potential Exxon Exclusion from Venezuela Deals Over CEO's Skepticism

Former President Donald Trump has signaled a possible exclusion of Exxon Mobil (XOM) from any future oil development deals in Venezuela, citing the company’s CEO as lacking sufficient enthusiasm during a Friday meeting at the White House. The statement, made on Sunday, underscores growing political tensions around U.S. energy engagement with Venezuela, a nation long plagued by economic instability and international sanctions. While Trump is not currently in office, his public commentary carries significant weight in financial and policy circles, particularly in energy markets. The proposed restriction would directly impact Exxon Mobil’s strategic ambitions in one of the world’s largest proven oil reserves. Venezuela holds approximately 304 billion barrels of proven crude reserves, the highest in the world, though production has declined to less than 1 million barrels per day in recent years due to infrastructure decay and sanctions. Exxon has previously expressed interest in revitalizing operations at the country’s major oil fields, particularly in the Orinoco Belt, where it holds joint ventures with state-owned PDVSA. If implemented, the restriction could delay or derail Exxon’s potential $5 billion investment in modernizing Venezuela’s refining and extraction infrastructure. Market analysts note that the company’s stock (XOM) experienced a 0.7% dip following the announcement, reflecting investor concerns over political risk. Additionally, Verizon (VZ), while not directly involved, may face indirect scrutiny if broader U.S. policy shifts toward Latin America energy projects are perceived as increasingly protectionist. The move also signals a potential shift in U.S. energy diplomacy, where political alignment with corporate actions becomes a condition for access to resource-rich but high-risk nations. The statement adds uncertainty to long-term energy planning for multinational oil companies operating in volatile regions.