Trump calls on US oil companies to fix Venezuela's rotting energy industry
Donald Trump, the U.S. president, began a meeting at the White House on Friday to discuss Venezuela. He said he wanted executives from some of the largest oil companies in the world to invest $100 billion to expand Venezuela's production.
The meeting reflects Trump's importance for oil in his strategy towards the OPEC nation, after U.S. troops seized Nicolas Maduro as the leader of the South American nation during a brazen raid overnight on the capital on January 3.
Trump stated at the beginning of the meeting that "we're going discuss how these great American businesses can help rebuild Venezuela's dilapidated petroleum industry and bring millions barrels of production to the United States, to the people of Venezuela and to the whole world."
He said: "We will be making the decisions as to which oil firms are going to enter, and that we will allow to enter." Trump applauded a recent agreement between?Venezuela interim leaders and the United States to supply 50 million barrels crude oil. The refineries that are equipped to refine the crude oil are specially designed.
He said that the United States would benefit from lower energy costs.
Trump administration officials said that they needed to control Venezuela's revenue and oil sales indefinitely in order to ensure that the country acted in America's interest. They also wanted to see large oil companies restore Venezuela's declining oilfields. The report states that companies such as Vitol, Trafigura, and Chevron are vying for U.S. licensing to market Venezuelan crude oil. However, oil majors have been reluctant to make long-term investments in Venezuela because of high costs and political unrest.
Mark Nelson, vice chairman of Chevron, said during the White House event that the company was committed to investing in Venezuela.
Chevron is already present in the country. However, Exxon Mobil & ConocoPhillips left nearly 20 years ago after their assets were nationalized.
Exxon CEO Darren Woods stated that the company views Venezuela as "uninvestable", and it needs to see major changes in order to return.
He said: "We are confident that these changes can be implemented with the help of President Trump and this administration, who will work hand-in-hand?with Venezuelan officials."
The meeting was also attended by smaller independents, private equity-backed companies, and some from Colorado, where Energy Secretary Chris Wright is from. Sheila Dang and Nathan Crooks; David French, Jarrett Renshaw and Shariq KHan; Richard Valdmanis, Nia Williams and Nathan Crooks.
(source: Reuters)
