A massive rift has opened between the White House and Big Oil. President Donald Trump has threatened to permanently block ExxonMobil ($XOM) from operating in Venezuela after the companyâs CEO, Darren Woods, publicly described the nation as "uninvestable".
âđşđ¸Trump, speaking from Air Force One, didn't hold back: "I didnât like Exxonâs response... Iâll probably be inclined to keep Exxon out. Theyâre playing too cute".
âBREAKDOWNđť
âExxonâs CEO Darren Woods reminded the administration that Venezuela has seized Exxon's assets twice in the past (ChĂĄvez era). He demands "significant legal and commercial changes" before committing a single dollar.
đşđ¸đťđŞâPresident Trump demanded a $100 Billion private-sector investment to rebuild Venezuelaâs oil infrastructure following the Venezuelan invasion .
He insists companies will be "completely safe" because they are now dealing directly with the U.S. government, and not the previous regime.
âđ Now the headline hit Exxon($XOM) where it hurtsâshares slipped in pre-market trading on Monday, January 12, following the weekendâs comments.
âAfter closing Friday at $124.62, the stock is facing downward pressure as investors weigh the loss of the worldâs largest proven oil reserves against the risk of Trumpâs "exclusion list".
ââ ď¸ There's a New Energy Hierarchy in South America.
âIf Exxon is out, who gets the "Golden Ticket" to the 300 billion barrels of oil?
âNow Unlike Exxon, Chevron never fully left Venezuela. They are already producing 240,000 barrels/day and have signaled they can "boost output by 100% essentially immediately".
âIn his interviews Trump had mentioned "so many" other oil companies are eager to enter the race.
Watch for smaller, high-risk firms or European majors like Repsol and Eni to scramble for the contracts if Exxon is hesitating to sign.
While Trumpâs cabinet is targeting a $50/bbl oil price to crush inflation, if he can force production without Exxon, it could lead to a global supply glut that suppresses energy stocks across the board in 2026.
âExxon is prioritizing its balance sheet; Trump is prioritizing his legacy. If Exxon remains in the "dog house," expect a massive capital rotation into Chevron.
