The White House is organizing a meeting Friday with U.S. oil company executives to discuss Venezuela, which the Trump administration has been pressuring to open its vast-but-struggling oil industry more widely to American investment and know-how. Representatives of Exxon, Chevron and ConocoPhillips are expected to attend the White House meeting, according to a person familiar with the matter who requested anonymity to discuss the plans.
With oil trading at roughly $56 a barrel, the transaction Trump announced late Tuesday could be worth as much as $2.8 billion. The U.S. goes through an average of roughly 20 million barrels a day of oil and related products, so Venezuela’s transfer would be the equivalent of as much as two and a half days of supply, according to the U.S. Energy Information Administration.
Despite Venezuela having the world’s largest proven crude oil reserves, it only produces on average about one million barrels day, significantly below the U.S. average daily production of 13.9 million barrels a day during October.
The press office for Venezuela’s government did not immediately respond to a request for comment on Trump’s announcement.
ExxonMobil is developing a mammoth offshore oil deposit in the waters off Guyana, Venezuela’s neighbor to the east. The company’s major oil discovery in 2015 prompted Venezuela to revive a century-old territorial dispute with Guyana and take steps to annex the remote region known as Essequibo, which comprises about two-thirds of Guyana’s land mass.
The development has also led to wide-ranging accusations from Venezuela’s government, including Rodríguez, against Guyana’s leaders and ExxonMobil. Two years ago, Venezuelan lawmakers even considered banning any future operation in Venezuela of oil companies working in Guyana.
