Trump Presses Oil Executives to Invest $100 Billion in Venezuela; Exxon Balks

President Donald Trump urged U.S. oil executives at the White House on Friday to move quickly into Venezuela and spend at least $100 billion rebuilding its oil industry, less than a week after U.S. forces captured President Nicolás Maduro. The response from the industry was more cautious than the president’s pitch.

The White House invited representatives of 17 companies, PBS NewsHour reported, including Chevron, ExxonMobil, ConocoPhillips, Halliburton, Valero, Marathon, Shell, Trafigura, Eni and Repsol. Trump told them they would be dealing directly with the United States rather than with Venezuela and that “you have total safety,” according to The Associated Press. He said the companies would spend at least $100 billion of their own money and “need government protection.” The AP reported that the companies would “bring over some security.”

ExxonMobil Chief Executive Darren Woods was the most skeptical. When Trump asked how long Exxon would need to restart operations, Woods said that under Venezuela’s current commercial frameworks the country is “uninvestable,” the AP and The Washington Post reported. He said significant changes have to be made to those commercial frameworks and the legal system, including a rewrite of the laws governing oil production. Exxon, whose assets there were seized twice, would send a team to assess the situation, the AP reported.

The history matters to the balance sheets. The Washington Post reported that Exxon is still owed about $1 billion for expropriated infrastructure and ConocoPhillips almost $9 billion. Trump told companies owed money they would get no special consideration, saying everyone would “start with an even plate,” according to the Post. He also said the government would decide which companies may enter Venezuela.

Other executives were warmer. Repsol’s Josu Jon Imaz said his company pumps 45,000 barrels a day in Venezuela, the Post reported. Shell’s Wael Sawan said the company had kept “boots on the ground in Venezuela all this time,” and Jeff Hildebrand of Hilcorp said his company is “fully committed and ready to go.” Chevron is the only U.S. company currently operating in Venezuela.

The scale of the task is large. Venezuela’s output has fallen below 1 million barrels a day, the AP reported, and Energy Secretary Chris Wright said it could take 8 to 12 years to triple it to 3 million barrels a day. The Post reported that Wood Mackenzie estimates companies would need an oil price of about $80 a barrel to break even in Venezuela, while crude is trading below $60.

Trump also announced that 30 million to 50 million barrels of sanctioned Venezuelan oil would be routed to the United States, the Post reported. Trump suggested the government might subsidize companies investing in Venezuela, and Sen. Peter Welch and eight other Democratic senators warned that any subsidies could be rescinded by lawmakers, according to the Post.

The administration wants to tap Venezuela’s large oil reserves quickly, PBS reported, while critics such as Tyson Slocum of Public Citizen called the removal of Maduro “violent imperialism.” Trump separately said he would meet Colombian President Gustavo Petro in early February, the AP reported.