Oil not well: Why ExxonMobil thinks Venezuela is 'uninvestable'
This collapse is central to the scepticism voiced by oil companies. Restoring production on a meaningful scale is not a matter of restarting wells. It would require rebuilding pipelines, upgraders, refineries, power supply and skilled manpower, all of which demand long-term capital commitments.
President Donald Trump speaks with Chief Executive Officer and Chairman of ExxonMobil Darren Woods, left, while Chairman, President and Chief Executive Officer of Marathon Petroleum Maryann Mannen, right, and Tallgrass Energy President and Chief Executive Officer Matt Sheehy, far right, look on during a meeting with oil executives in the East Room of the White House, Friday, Jan. 9, 2026, in Washington. (AP Photo/Alex Brandon)
When US President Donald Trump met senior oil executives to press for investment in Venezuela, the message from the White House was deliberately ambitious. Venezuela has the world’s largest proven oil reserves.
Its political landscape, Trump argued, has shifted. With American backing and security guarantees, the country should once again become a major destination for US energy capital.The response from the oil industry was notably restrained.Executives did not dispute Venezuela’s resource potential. Instead, they pointed to a combination of legal uncertainty, economic risk and hard-earned experience that continues to make large-scale investment unattractive, even with presidential support.
A country rich in oil, poor in production
Venezuela’s oil numbers are striking. The country holds an estimated 303 billion barrels of proven reserves, roughly 17% of the global total, more than any other nation. In the late 1990s, it produced over 3 million barrels per day, ranking among the world’s leading exporters.Today, output has fallen to below 1 million barrels per day. Years of mismanagement, underinvestment, sanctions and infrastructure decay have hollowed out what was once one of the most sophisticated oil industries in the developing world.
This collapse is central to the scepticism voiced by oil companies. Restoring production on a meaningful scale is not a matter of restarting wells. It would require rebuilding pipelines, upgraders, refineries, power supply and skilled manpower, all of which demand long-term capital commitments.
Trump’s argument: security, speed and scale
At the meeting, Trump urged companies to think big. He spoke of investments running up to $100 billion, promised “total security” for American firms and suggested deals could be finalised quickly.