Happening Today: Trump Meeting With US Oil Execs From Exxon, Shell, Others, To Discuss Venezuela
by Tyler Durden
Authored...
President Trump is convening top oil executives at the White House on Friday as part of a push to steer U.S. companies toward investing in Venezuela’s struggling oil industry, CBS reported today.
Leaders from
Chevron, Exxon, ConocoPhillips, Continental, Halliburton, HKN, Valero, Marathon, Shell, Trafigura, Vitol Americas, Repsol, Eni, Aspect Holdings, Tallgrass, Raisa Energy and Hilcorp are expected to attend, along with Secretary of State Marco Rubio, Energy Secretary Chris Wright and Interior Secretary Doug Burgum. Wright has already held separate talks with several executives earlier in the week.
According to the White House, the discussions will center on
“investment opportunities that will restore Venezuelan oil infrastructure.”
Trump has argued that Venezuela’s vast oil reserves could help revive its economy while also benefiting U.S. consumers and energy companies. In a recent interview,
he said he wants companies to commit at least $100 billion to “rebuild the whole oil infrastructure” in the country.
The administration has tightened pressure on Venezuela through a new oil “quarantine,” including the seizure of another tanker Friday, the fifth such action in recent weeks. Rubio said the strategy gives the U.S. “tremendous leverage” and that
Washington plans to sell up to 50 million barrels of sanctioned crude on the open market, with the proceeds under U.S. control.
Chevron remains the only major U.S. oil producer still operating in Venezuela after the industry was nationalized under Hugo Chávez, and it is unclear how quickly other firms would move in. Analysts caution that high costs, political uncertainty and Venezuela’s history of asset seizures could slow new investment. Venezuelan crude is also heavy and more difficult to refine, though some Gulf Coast refineries are equipped to handle it.
Recall,
we wrote Energy Sec. Chris Wright will be in Miami for the Goldman Sachs Energy, Clean Tech & Utilities Conference, a major industry gathering that will bring together executives from Chevron, ConocoPhillips and other producers. Chevron remains the only global oil supermajor maintaining operations inside Venezuela.
Bloomberg
writes that despite Venezuela holding the world’s largest proven crude reserves,
experts estimate restoring its oil system would require approximately $10 billion in investment every year for the next decade.
Industry participants say interest in the country is real, but the recent removal of President Nicolás Maduro alone is not enough to unlock capital.
Companies want clarity on whether a durable government will emerge, whether contracts and the rule of law will be respected, and whether US political support for their presence in Venezuela will extend beyond Trump’s term in office.
Earlier this week
we wrote that President Donald Trump said the US may subsidize American oil companies to help rebuild Venezuela’s energy sector, arguing the plan would strengthen Venezuela’s recovery and protect US economic interests after the removal of Nicolás Maduro.
In an interview with NBC News on Monday, Trump said US firms could have expanded operations in the country
“up and running” in less than 18 months — a timeline that sharply conflicts with expert estimates that
reconstruction could take a decade and cost more than $100 billion.
“I think we can do it in less time than that, but it’ll be a lot of money,” Trump said. “A tremendous amount of money will have to be spent and the oil companies will spend it, and
then they’ll get reimbursed by us or through revenue.”
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