Exxon Mobil Confirms It Has Technology to Develop Venezuela’s High-Cost Crude
January 30, 2026 — Reuters
Exxon Mobil Corporation (NYSE: XOM) has announced that it possesses the necessary technology to extract and produce Venezuela’s heavy and costly crude oil barrels more efficiently. This statement was made by Exxon CEO Darren Woods during the company’s fourth-quarter earnings call held on Friday.
Venezuela is known for its vast reserves of heavy crude oil that traditionally present significant production challenges and high costs. However, Exxon’s advancements in heavy oil extraction technology, largely developed through its work in Canadian oil sands, position the company to lower production costs, increase oil recovery rates, and introduce more economically viable barrels into the global market.
“We have that with the work that we’ve done up in Canada and the technology organization’s focus on developing heavy oil resources,” Woods said. “We think we bring an advantaged approach that will lead to lower-cost production, higher recovery, and therefore more economic barrels onto the marketplace.”
A Renewed Interest in Venezuela Amid Political Changes
Exxon departed Venezuela nearly 20 years ago after its assets were nationalized by the Venezuelan government. Since then, the country has been widely considered risky and "uninvestable" due to political instability and economic turmoil. Earlier this month, Woods had described Venezuela as "uninvestable" during a White House meeting, a remark that later drew criticism from then-President Donald Trump.
Nevertheless, Woods expressed optimism about the current U.S. administration’s commitment to stabilize Venezuela and create conditions favorable for new investments. “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,” Woods said. “I think those are the right objectives that the government’s working on for the benefit of Venezuela.”
He also reiterated Exxon’s willingness to send a technical team to Venezuela to assess opportunities and collaborate more closely as potential reforms take shape.
Impact on Neighboring Regions and Future Outlook
Woods highlighted that improvements in Venezuela’s political and economic landscape could also positively influence Exxon’s operations near Guyana. Part of Exxon’s Stabroek oil block in offshore Guyana is currently under force majeure due to a border dispute with Venezuela, but potential changes in the region might improve the operating climate and ease tensions.
The company’s statements suggest a cautious but clear interest in re-engaging with Venezuela’s oil sector once conditions allow, leveraging its technological capabilities to unlock value from a notoriously challenging resource.
Reporting by Arunima Kumar in Bengaluru and Sheila Dang in Houston; Editing by Shailesh Kuber, Nathan Crooks, and Franklin Paul
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