Trump to huddle with U.S. oil executives Friday on Venezuela
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Venezuela's Bajo Grande Refinery in 2023. Photo: Gaby Oraa/Bloomberg via Getty Images
President Trump will meet Friday with U.S. oil executives at the White House as he presses the industry to invest in reviving Venezuela's production, multiple sources tell Axios.
Why it matters: Boosting output from the nation's dilapidated oil infrastructure will require massive outlays.
Friction point: Convincing the industry could be a heavy lift amid uncertainty about legal and fiscal regimes, security, as well as modest prices and opportunities elsewhere.
- Friday's meeting is expected to include representatives from Chevron, Exxon and ConocoPhillips, the Wall Street Journal reports.
- The companies have said little to nothing publicly about any potential plans for Venezuela.
Sen. Edward Markey (D-Mass.), on Tuesday implored Chevron CEO Mike Wirth to provide details about its involvement in Trump's plans for Venezuela, including any communications it had before U.S. military operations began there.
- "The American people deserve to know whether and, if so, how Chevron participated in President Trump's extra-constitutional military operation, and whether Chevron is promoting our country's involvement in regime change and global destabilization for its own financial gain," Markey said in a letter.
- Chevron is currently the only U.S. producer operating there under a special U.S. license.
- Markey sent similar letters to the heads of Exxon and ConocoPhillips.
The big picture: Venezuela may have the world's largest proven crude oil reserves, estimated at more than 300 billion barrels, which is roughly 17% of the global total.
- But production is currently around or below one million barrels per day, less than 1% of global supply, after years of underinvestment, mismanagement, and sanctions.
- Exxon and ConocoPhillips left the nationalized sector around two decades ago in a dispute with then-President Hugo Chávez's regime.
What they're saying: The industry needs to resolve huge uncertainties before making commitments, multiple analysts say.
- "These companies, if they're looking to invest billions of dollars into this country, they want to make sure that they're on solid legal, contractual ground," oil analyst Rory Johnston said on the latest episode of the Shift Key podcast.
Zoom in: One company that has publicly expressed interest in Venezuela is Continental Resources, a firm led by Harold Hamm, a longtime informal energy adviser to Trump.
- Hamm told the Financial Times earlier this week that "with improved regulatory and governmental stability we would definitely consider future investment."
What we're watching: For signs of industry interest, and more information on what type of operating regime the White House may envision that would give companies enough confidence to invest and operate in Venezuela.
- Energy Secretary Chris Wright is reportedly meeting with industry officials at an energy conference in Miami this week.
