American oil executives are growing more frustrated with Trump’s attention on Venezuela: ‘This harms producers in the U.S.’

Trump’s International Energy Focus Frustrates U.S. Oil Producers

As President Donald Trump ushers in the new year by opening Venezuela’s oil sector to American companies and expressing interest in Greenland’s untapped oil and mineral resources, many U.S. shale producers are growing increasingly dissatisfied. Their frustration stems from Trump’s emphasis on global energy ventures, which they feel comes at the expense of addressing the challenges facing domestic oil businesses.

Despite the United States maintaining near-record levels of oil production, Trump’s “Drill, baby, drill” mantra is losing its impact amid falling oil prices and a slowdown in drilling operations. While the president’s push for lower gasoline prices has largely succeeded—thanks in part to increased OPEC output—this has made it harder for American oil companies to remain profitable.

“There’s a sense of being overlooked,” shared the CEO of a major U.S. oil company with Fortune, speaking anonymously to avoid backlash from the administration.

Domestic Oil Industry Faces Headwinds

The U.S. benchmark crude price is hovering just below $60 per barrel—a level that makes it difficult for domestic producers to break even or justify new investments. As of January 16, the number of active drilling rigs has dropped by about 15% over the past year. Nevertheless, previous drilling efforts and improved efficiency have propelled U.S. oil output to nearly 13.8 million barrels per day, close to historic highs. This robust supply is contributing to the ongoing slump in oil prices. On the positive side, industry leaders appreciate Trump’s efforts to streamline project approvals and relax environmental regulations.

Venezuela: The Next Frontier?

Meanwhile, Trump is encouraging American firms to invest over $100 billion in Venezuela to revitalize its aging infrastructure and boost production of its heavy crude oil.

“Venezuela will earn more in the next six months than it has in the past two decades. Every major oil company is joining us,” Trump declared at the World Economic Forum in Davos on January 21.

Back home, Trump predicted, “We’ll soon be paying less than $2 a gallon.” Currently, the average price for regular gasoline in the U.S. is $2.76 per gallon, down 32 cents from a year ago.

White House spokesperson Taylor Rogers credited Trump’s “energy dominance agenda” for record-high oil and gas production, adding that the new deal with Venezuela has created unprecedented opportunities for American oil companies to invest in the world’s largest oil reserves.

Marshall Adkins, head of energy at Raymond James, noted that U.S. shale producers are disheartened by low prices and Trump’s aggressive efforts to increase global oil supply, including his outreach to OPEC and Venezuela.

“Trump has made it clear—he wants cheaper oil,” said Adkins. “That’s not good news for U.S. producers.”

Industry Voices Express Concern

The CEO of a smaller oil company in Midland, Texas, described Trump’s focus on oil as “frustrating,” and criticized the use of oil as a justification for ousting Venezuelan leader Nicolás Maduro as “disgraceful.”

“His rhetoric is irritating, but ultimately it’s just background noise,” the executive said, requesting anonymity. He argued that ramping up Venezuelan oil output enough to affect global prices would take years, and that current prices are already damaging for the industry.

“It’s a tough environment in the Permian Basin,” he added. “The fundamentals just don’t support continued drilling.”

Venezuela’s Oil Prospects: Who Will Invest?

While some nimble, smaller companies may venture into Venezuela, Adkins believes that only significant investment from major oil corporations will make a real difference. However, Exxon Mobil CEO Darren Woods recently told Trump that Venezuela remains “uninvestable” at present.

So, which companies are likely to enter Venezuela?

• Chevron is currently the only U.S. company producing oil in Venezuela, thanks to a special license. Vice Chairman Mark Nelson informed Trump that Chevron could boost its output by 50% within two years. However, this would only raise Venezuela’s total production from about 1 million to just over 1.1 million barrels per day—a far cry from the nearly 4 million barrels it once produced.
• Oilfield service providers are also eager to return, as they act as contractors rather than major investors. Halliburton CEO Jeff Miller stated during a January 21 earnings call that his company could “scale up very quickly” if needed. “Interest in Venezuela is overwhelming,” Miller said, though he noted the market is much smaller than it was a decade ago.
• Duane Germenis, president of Intelligent Water Solutions, previously worked in Venezuela but is reluctant to return, citing safety concerns and unpaid debts. “There’s plenty of oil to be found, but how secure will you be?” he told Fortune.

Some private U.S. oil companies, such as Hilcorp and Armstrong Oil & Gas, have expressed interest in investing in Venezuela, but did not respond to requests for comment.

European Companies Eye Opportunities

Major European oil firms may ultimately play a leading role in Venezuela’s energy sector. Shell CEO Wael Sawan mentioned at a White House meeting that his company sees “a few billion dollars worth of opportunities” for investment.

Similarly, Spain’s Repsol and Italy’s Eni are already operating in Venezuela through a joint venture focused on natural gas for domestic electricity. Both companies expressed interest in expanding crude oil production, pending U.S. approval.

Repsol CEO Josu Jon Imaz stated that the company could triple its current output of 45,000 barrels per day within three years.

“We’re also open to partnering with American firms to accelerate development, leveraging U.S. expertise and investment,” Eni CEO Claudio Descalzi told Trump.

This article was originally published on Fortune.com.