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 companyās CEO, Darren Woods, publicly described the nation as "uninvestable".
āšŗšøTrump, speaking from Air Force One, didn't hold back: "I didnāt like Exxonās response... Iāll probably be inclined to keep Exxon out. Theyāre playing too cute".
āBREAKDOWNš»
āExxonās CEO Darren Woods reminded the administration that Venezuela has seized Exxon's assets twice in the past (ChĆ”vez era). He demands "significant legal and commercial changes" before committing a single dollar.
šŗšøš»šŖāPresident Trump demanded a $100 Billion private-sector investment to rebuild Venezuelaās oil infrastructure following the Venezuelan invasion .
He insists companies will be "completely safe" because they are now dealing directly with the U.S. government, and not the previous regime.
āš Now the headline hit Exxon($XOM) where it hurtsāshares slipped in pre-market trading on Monday, January 12, following the weekendās comments.
āAfter closing Friday at $124.62, the stock is facing downward pressure as investors weigh the loss of the worldās largest proven oil reserves against the risk of Trumpās "exclusion list".
āā ļø There's a New Energy Hierarchy in South America.
āIf Exxon is out, who gets the "Golden Ticket" to the 300 billion barrels of oil?
āNow 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".
āIn 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 Trumpās 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.
āExxon is prioritizing its balance sheet; Trump is prioritizing his legacy. If Exxon remains in the "dog house," expect a massive capital rotation into Chevron.
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