ExxonMobil's CEO Called Venezuela 'Uninvestable.' Trump Says It's Going In Anyway. Here's Why Investors Should Pay Attention.

In January, ExxonMobil's CEO Darren Woods labeled Venezuela as "uninvestable" during a White House meeting, a statement that didn't sit well with President Trump. A few months later, the President announced that Exxon is set to return to Venezuela. Although Exxon hasn't confirmed its plans, recent developments suggest that investors should pay attention to this potential shift.

In a recent press event, President Trump announced that Exxon and Chevron are among the major oil companies planning to enter Venezuela. Chevron has already confirmed its expansion, with one of its joint ventures now having the rights to develop two adjacent oil fields. This expansion could lead to an investment of over $7 billion over the next five years, with the aim of doubling its production to approximately 600,000 barrels per day.

ExxonMobil's CEO had previously expressed a need for better investment protections and improved economics before returning to Venezuela. The recent agreement's enhanced terms indicate that Venezuela may be willing to meet these conditions. While President Trump's announcement and Chevron's deal terms don't guarantee Exxon's return, they suggest that Venezuelan conditions might be more favorable.

If Exxon were to return under these improved terms, it could strengthen its long-term growth plan to 2030, making it an even more attractive oil stock for investors to buy and hold. However, before making any investment decisions, investors should consider the Motley Fool's Stock Advisor analysis, which identified the 10 best stocks for long-term growth, with ExxonMobil not included in the list.