Exxon Team Evaluating Oil Opportunities in Venezuela at CERAWEEK

• Exxon is assessing both Venezuela's oil resources and the current state of infrastructure, with short-term production increases possible but full industry rebuilding estimated to cost hundreds of billions of dollars and take years
• Venezuela's oil output has significantly declined due to underinvestment, falling from a peak of 3 million barrels per day when it was a major OPEC producer
• The evaluation comes after Exxon CEO's January criticism of Venezuela's investment protections reportedly drew criticism from U.S. President Donald Trump

Summary

Key Development:

Exxon Mobil has deployed a team to Venezuela this week to evaluate the country's oil and gas resources and infrastructure, according to upstream head Dan Ammann speaking at CERAWeek in Houston on March 25, 2026.

Companies & Context:

• Exxon Mobil: The U.S. oil major exited Venezuela in 2007 following asset expropriation
• In January 2026, Exxon CEO Darren Woods criticized Venezuela for lacking "durable protections for new investment," drawing criticism from President Donald Trump

Assessment Focus:

Ammann emphasized the team is evaluating both the state of Venezuela's oil resources and, critically, the condition of existing infrastructure. He noted that while short-term actions could incrementally boost production, fully rebuilding Venezuela's oil industry would require "hundreds of billions of dollars" and an extended timeline.

Market Context:

Venezuela, an OPEC member, has experienced significant production decline due to chronic underinvestment. The country once produced 3 million barrels per day but output has substantially dwindled in recent years.

Implications:

This evaluation signals potential re-entry interest from major Western oil companies into Venezuela's energy sector, though significant investment barriers and political risks remain. Any production recovery would likely be gradual rather than immediate, limiting near-term impact on global oil supply. The substantial capital requirements (hundreds of billions) and infrastructure challenges suggest this is a long-term opportunity requiring political and economic stabilization before major commitments materialize.