Exxon Mobil (XOM.US) and Chevron (CVX.US) are actively working to increase their production within OPEC member countries, including some of the world's highest-risk operational hubs. The assertive foreign policy of U.S. President Donald Trump is facilitating these companies in securing deals.
Venezuela, which holds the world's largest oil reserves, is a market of significant focus. After President Trump's administration moved against former leader Nicolás Maduro and took control of the country's crude exports, this nation, long closed to U.S. investors, has now reopened. Sources familiar with the matter indicate the U.S. government is also supporting negotiations by Exxon Mobil and Chevron in Iraq, Libya, Algeria, Azerbaijan, and Kazakhstan.
This international expansion by the American oil giants represents the latest instance of Trump upending traditional norms for U.S. corporate engagement abroad, particularly within his favored sectors like manufacturing, fossil fuels, and cryptocurrencies. While European oil majors—Shell, Total, and BP—are also seeking expansion in the Middle East, U.S. government backing provides Exxon Mobil and Chevron with a competitive edge.
"You will see U.S. ambassadors out there promoting the companies," said Samantha Carr-Yoder, a former senior State Department official who assisted U.S. firms with overseas expansion during the Obama administration and Trump's first term. "The way they are pushing this cooperation is something not seen in previous administrations, even Republican ones."
Although major oil producers have operated within OPEC+ nations for decades, opportunities for new projects have been limited due to state control of the oil sector, demanding contract terms, and political instability. In recent years, U.S. giants have favored developing domestic shale operations, helping the U.S. surpass Saudi Arabia in 2018 to become the world's largest oil producer.
Now, however, with host governments eager to curry favor with Trump, gain implicit U.S. security assurances, and avoid tariffs, U.S. oil executives sense an opportunity for international growth not seen since the mid-2000s. Investment in some of the world's largest oil fields would mark a further expansion of Trump's pursuit of U.S. "energy dominance" and extend fossil fuel supply well into the 2040s.
Of course, this carries risks. During the nationalization wave that swept the Middle East in the 1970s, most global majors lost the bulk of their core assets. Subsequent attempts to return to the region have failed due to tough terms and political volatility. Exxon Mobil has had its assets nationalized twice in Venezuela over the past 50 years; just four years ago, the entire industry was forced to exit Russia following the conflict in Ukraine.
The oil market can be equally unforgiving. Starting in the mid-2000s, Exxon Mobil and Chevron invested heavily in large overseas projects, only to face budget overruns, multi-year delays, and severe impacts from oil price crashes in 2014 and 2020.
But with U.S. domestic shale output nearing a plateau and oil demand proving stronger than many forecasters expected, the American giants are seeking their next growth phase. In recent months, executives from Exxon Mobil and Chevron have met with officials from Iraq, Libya, and Algeria, often accompanied by senior members of the Trump administration. Special Envoy Steve Witkopf facilitated a deal between Exxon Mobil and Azerbaijan in August.
"The priority of energy dominance does align well with what we are doing," said John Ardill, Exxon Mobil's head of exploration, in an interview. "But it doesn't drive which countries we go into, or how we go into them."
U.S. Special Envoy for Syria Thomas Barak assisted in brokering a similar agreement for Chevron with the Syrian government this week. Kuwait is also hoping to attract foreign investment by opening parts of its oil fields.
"Pragmatic U.S. energy policy, coupled with improved regulatory and fiscal terms in resource-rich nations, is creating an environment supportive of responsible investment," said Clay Neff, President of Chevron's upstream business, in an emailed statement.
While many Middle Eastern agreements are non-binding, all indications suggest Exxon Mobil and Chevron are engaged in serious negotiations to replenish reserves for the next decade and beyond. "Given the U.S. government's new, more aggressive strategy, we believe U.S. majors are gaining a disproportionate advantage," wrote RBC Capital Markets analyst Biraj Bohapatria in a briefing, suggesting this "could provide access to resources unavailable to their European peers."
The biggest prize is the vast oil reserves within OPEC and its allies, despite the group's production constraints. After the 2003 U.S. invasion of Iraq, Exxon Mobil operated the West Qurna-1 field, one of Iraq's largest, but exited in 2024 due to insufficient profitability despite massive crude reserves.
Now, the surge in American oil supply is forcing OPEC nations to rethink their strategy for maintaining global market share. Several countries are now indicating a willingness to offer new terms in exchange for the Western technology, expertise, and capital needed to rebuild aging fields.
Ardill noted that many governments want to emulate Guyana, where Exxon Mobil discovered oil in 2015 and now produces close to one million barrels per day. The South American nation has recently become the world's fastest-growing economy, though its commercial terms with Exxon Mobil have been criticized by some as being overly favorable to the company.
"Many governments realize there's greater value in being creative and open to finding the right profit-sharing framework than in never reaching a goal and attracting no investment," Ardill said.
Exxon Mobil signed an agreement in October to study Iraq's giant Majnoon field. Months earlier, Chevron signed a similar pact for the Nasiriyah project in southern Iraq. Both companies had shown interest in taking over the West Qurna-2 field, which accounts for roughly 10% of Iraq's output, before the current operator, Lukoil PJSC, agreed to sell most of its international assets to the Carlyle Group.
Some within Iraq's political elite view investment from U.S. oil majors as a demonstration of the country's independence from Iran and believe it will help win Trump's favor as U.S.-Iran relations deteriorate. Iraqi officials, tired of slow development progress by Russian companies, see the presence of Exxon Mobil or Chevron as a potential buffer against future conflicts involving Iran, Israel, and the U.S., according to sources.
Substantial progress may be difficult before a new Iraqi government is formed. Government formation following elections originally scheduled for November has been delayed due to negotiations among factions over power-sharing arrangements. Nevertheless, officials from the current administration have been open about their desire to work with Exxon Mobil and Chevron.
The two U.S. oil giants have also expressed interest in re-entering Libya after more than a decade of civil war. As part of a plan to increase its output by 40% by 2030, Libya is offering exploration blocks estimated to hold 10 billion barrels of resources to foreign investors.
Furthermore, U.S. oil majors see opportunities in Europe, Africa, Central Asia, and the Caribbean. Since Trump took office a year ago, Exxon Mobil has expanded in Angola, secured offshore drilling rights in Greece, won an exploration concession in Egypt, and signed production-sharing contracts in Trinidad and Tobago near Guyana.
Chevron is in serious negotiations with Kazakhstan to extend the license for its one-million-barrel-per-day Tengiz field, has signed contracts with Suriname, and increased its exploration budget by 50% this year. The company has submitted bids for four offshore blocks in Greece and signed an agreement with Turkey this week.
"Chevron is actively pursuing exploration opportunities to further strengthen and diversify our upstream portfolio," Neff stated.
Negotiating with multiple governments simultaneously allows oil companies to select the best opportunities. "We are very selective about going where the geology is best, where we have the right commercial alignment with the government, and where the geopolitical risk profile is acceptable," said Exxon Mobil's Ardill.
This approach also helps secure the most favorable deals. "The more options you have, the more leverage you have," said former State Department official Carr-Yoder. "It allows you to step back in fiscal negotiations and say, 'Okay, maybe this works, or we're going somewhere else.'"
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