Exxon Mobil Chief Executive Darren Woods told analysts on Friday that the oil major has the engineering and extraction technology necessary to develop Venezuela’s heavier, higher-cost barrels.
Woods reiterated a position he had previously expressed earlier this month when he described Venezuela as "uninvestable" during comments at a White House meeting that later drew a rebuke from President Donald Trump. On the analyst call he said he believed the U.S. administration was committed to changes needed to attract and secure investment in the country.
"If you look at what they’re currently focused on, it’s stabilizing the country, kick-starting the economy, and then ultimately transitioning into a more representative, democratically elected government. I think those are the right objectives that the government’s working on for the benefit of Venezuela," Woods said, adding that Exxon remained open to sending a technical team to assess work on the ground.
During the company’s fourth-quarter earnings call Woods elaborated on Exxon's technical readiness to handle Venezuela’s heavy crude. "We have that with the work that we’ve done up in Canada and the technology organization’s focus on developing heavy oil resources, we think we bring an advantaged approach that will lead to lower-cost production, higher recovery, and therefore more economic barrels onto the marketplace," he said.
Exxon exited Venezuela almost two decades ago after its local assets were nationalized. Woods noted that shifts inside Venezuela could yield a more favourable operating environment geographically near Guyana, while also acknowledging that certain portions of the Stabroek offshore block remain subject to force majeure as a result of a border dispute.
Context and implications
The comments stress Exxon's view that technical capability developed in other heavy-oil settings - notably Canada - could be applied to Venezuelan reservoirs to improve recovery and economics. The company continues to signal readiness for a technical engagement in Venezuela should conditions permit, and is watching political and economic developments closely.
At the same time, Exxon framed potential opportunities in the region against an ongoing operational constraint: parts of the Stabroek block in the broader area remain under force majeure because of a border disagreement, a factor the company referenced when discussing nearby prospects.
Woods’ remarks keep the focus on the intersection of technology, political stability, and investment conditions as determinants of whether higher-cost Venezuelan barrels can be brought to market effectively.