President Donald Trump has an ambitious plan: get American oil companies to invest at least $100 billion in Venezuela. The problem? Most oil executives aren't exactly rushing to write checks.
Trump gathered nearly 20 industry representatives in the White House's East Room on Friday, pitching them on a grand vision to revitalize Venezuela's oil operations following the capture of leader Nicolás Maduro. He's betting on a swift turnaround for the country's battered energy sector.
But the reception was decidedly lukewarm. Exxon Mobil Corp. (XOM) CEO Darren Woods didn't mince words, describing Venezuela as currently "uninvestable." That's not just rhetoric. Exxon has been down this road before, watching the Venezuelan government confiscate its assets, according to Bloomberg. It's the kind of experience that tends to dampen enthusiasm for round two.
Harold Hamm of Continental Resources Inc. (CLR), a longtime Trump supporter, also stopped short of making any commitments. He expressed interest in the concept but clearly wasn't ready to pledge capital to a country with Venezuela's track record.
The one bright spot? Chevron Corp. (CVX) is actually still there. Energy Secretary Chris Wright highlighted Chevron as the "one specific pledge" from an oil company willing to help resurrect Venezuela's crude production. The company is currently the only U.S. major with a presence in the country, and Vice Chairman Mark Nelson confirmed Chevron's readiness to significantly increase output.
Trump remained optimistic despite the tepid response. "They're going to be going in with hundreds of billions of dollars in drilling oil, and it's good for Venezuela and it's great for the United States," he told the assembled executives.
The reality is that Venezuela's oil sector desperately needs investment and expertise. Years of mismanagement and underinvestment have crippled what was once a powerhouse industry. But the hesitation from most oil executives reflects a straightforward calculation: when a government has seized your assets before, why would you give them another chance?
Chevron's willingness to expand suggests some companies see opportunity worth the risk. Whether that gamble pays off could determine whether Venezuela's oil industry gets the revival Trump envisions or remains stuck in its current state of decay.