Donnie Oilrig Threatens to Bench Exxon After CEO Pokes Holes in His Venezuela Gameplan

Shots fired. Hard hat eviscerated.

Late last night, (presumably after a club championship golf match) Donnie Oilrig decided Exxon Mobil needed a reminder of who’s really in charge.

While cruising on Air Force One, Trump told reporters he’d “probably be inclined” to keep Exxon Mobil out of Venezuela altogether. Why? Because Exxon didn’t sprint enthusiastically enough toward a $100 billion oil invitation that came with a side of regime change and a promise of “guarantees” (details TBD).

“They’re playing too cute,” Trump said, which in Trump-to-English roughly translates to: You hesitated, and I noticed.

Of course, it didn’t help that Exxon CEO Darren Woods had the audacity to say (out loud, in the White House) that Venezuela is “uninvestable” in its current state. A damning statement about a country that nationalized assets, rewrote hydrocarbon laws, and still owes billions from arbitration cases. But timing is everything, and saying uninvestable during a presidential push for fast money is how you end up on the naughty list.

To be fair, Exxon has receipts. Back in 2007, Venezuela seized Exxon’s and ConocoPhillips’ assets. Caracas still owes them billions. Woods laid out the usual adult requirements: changes to commercial frameworks, a legal system that doesn’t evaporate, hydrocarbon laws that don’t shapeshift, and “durable” investment protections. Boring stuff. Necessary stuff. Also the kind of stuff that slows a headline.

(Source: Fox Business)

Trump, meanwhile, wants urgency. He’s been pressing U.S. oil giants to plow at least $100 billion into Venezuela’s energy sector, promising government security assistance and, yes, “guarantees.” When asked what those guarantees look like, Trump declined specifics, opting instead for the classic closer: They didn’t have Trump as a president last time. Essentially, another “I have concepts of a plan” answer.

After seeing Trump lash out, Exxon tried to thread the needle. Woods said the company is prepared to send a technical team to evaluate the state of Venezuela’s oil assets… in other words: we’ll look, no promises. Investors caught the hesitation instantly and Exxon shares dipped (-.81%).

There’s also a control group: Chevron. Chevron is currently the only major American oil firm still operating in Venezuela, so they clearly have the upper hand.

As for what’s at stake? No big deal… just a kajillion dollars’ worth of black gold still rotting peacefully in the ground. Venezuela holds the world’s largest proven oil reserves, and cracking that vault cleanly, legally, and profitably would be a monster prize. Exxon’s issue is that the path from Trump says go to oil actually flows is paved with a lot more legal, political, and historical landmines than what’s being pitched to the American public.

Regardless, Exxon better start playing ball or Donnie is gonna bench them for a backup oil company that will get on board with his Venezuela oil plans.

So, Exxon (if you’re reading this) next time the President invites you to drill, RSVP enthusiastically. Otherwise, you risk finding out what happens when cute meets Air Force One.

At the time of publishing this article, Stocks.News holds positions in Exxon as mentioned in the article.