WASHINGTON: In a significant message to the oil industry, ExxonMobil's CEO Darren Woods stated that Venezuela remains "uninvestable" unless major changes are implemented in its legal and commercial frameworks. This statement came during a high-stakes gathering at the White House, attended by Donald Trump and other prominent energy executives, as the president pushed for substantial capital infusion into Venezuela’s troubled oil sector.

Woods emphasized the need for durable investment protections and amendments to the country's hydrocarbon laws, asserting, "If we look at the legal and commercial constructs, frameworks in place today in Venezuela, today it’s uninvestable." ExxonMobil, which has faced asset seizures in Venezuela dating back to the 1940s, has a cautious approach toward the country despite its vast oil reserves.

The meeting occurred shortly after Trump initiated an attempt to control Venezuela's natural resources, demonstrating his administration's eagerness to revitalize its oil production. Trump stated, "If you don’t want to go in, just let me know, because I got 25 people that aren’t here today that are willing to take your place," highlighting his urgency for investment decisions. Amid Trump's calls for at least $100 billion in investments, many in the industry remained apprehensive, stressing that legal, financial, and security guarantees were essential before committing to Venezuela.

While Woods expressed skepticism, other executives, such as Chevron and Shell, hinted at optimism for possible investments within the next few years, contingent on the lifting of sanctions and regulatory waivers. Yet, many executives echoed Woods' sentiment, warning against the complexities and risks involved in investing in an unstable Venezuelan market where past experiences of expropriation linger.

Experts point out that the potential for investment must be balanced against Venezuela’s myriad challenges, underscoring that currently, the barriers to entry are significant. "The legal, political and geopolitical risks of going into Venezuela to make large investments are very significant," remarked Meghan O'Sullivan, a geopolitics and energy specialist. Even as Trump sought to rally the executives, he appeared unwilling to make definitive concessions—raising concerns about the feasibility of revitalizing Venezuela’s oil industry under the current conditions.