U.S. President Donald Trump continues to shake up the energy sector. On Sunday, he said he is ‘inclined to keep Exxon out’ of Venezuela’s oil rebuild, signaling he may block ExxonMobil (XOM) from investing in the country’s vast oil reserves.
Claim 70% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
For context, U.S. forces captured Nicolás Maduro and Cilia Flores in Caracas, Venezuela, on January 3 and flew them to New York on drug trafficking charges. Since then, the Trump administration has framed the intervention as both a fight against criminal networks and an opportunity to reopen one of the world’s largest oil reserves to U.S. energy firms.
Trump Criticizes Exxon CEO Woods’s Comments
Trump’s remarks followed comments from Exxon’s CEO calling Venezuela ‘uninvestable,’ highlighting a growing divide between corporate risk concerns and Washington’s push to bring U.S. oil companies back into the region. Speaking to reporters, Trump said, “I didn’t like their response. They’re playing too cute,” after Woods’s comments, adding that other companies want to invest in Venezuela.
Exxon had a difficult track record in Venezuela. The government took over its assets in 2007 after nationalization, and although the company sued for compensation, it recovered only a small portion of what it sought. Exxon’s CEO earlier said the country would need major changes before the company would even consider returning.
Trump Pushes to Reopen Venezuela’s Oil Sector
Since the U.S. intervention in Venezuela, the Trump administration has made attracting American oil investment a top priority in its push to rebuild the country’s energy infrastructure. Trump has personally invited major oil executives to consider helping fix Venezuela’s struggling oil industry and has promised strong U.S. support for companies that step forward.
Among the major U.S. oil firms, Chevron (CVX) is the only one currently operating in Venezuela. Its vice chairman told Trump that Chevron could increase production fairly quickly—but even he stopped short of committing to large, public investment plans during the White House meeting. With Trump signaling openness to other companies that appear more willing to enter Venezuela, Exxon could lose strategic ground to competitors like Chevron, which has signaled readiness to ramp up production.
On the other hand, ConocoPhillips’ (COP) CEO echoed ExxonMobil’s cautious stance, noting that his company is still owed about $12 billion from past Venezuelan operations and also left the country after its assets were nationalized in 2007. However, Trump dismissed the idea of reimbursing companies for those past losses, saying the focus should be on future opportunities rather than past setbacks.
XOM, CVX, COP: Which Oil Stock Do Analysts Favor?
We used TipRanks’ Comparison Tool to compare all three major U.S. oil companies on different parameters. According to analysts, CVX and COP are rated as Strong Buy, while XOM carries a Moderate Buy rating. Below is a screenshot for reference.
