Supported by U.S. President Donald Trump’s assertive foreign policy, major oil corporations Exxon Mobil and Chevron are targeting OPEC-affiliated nations to expand oil production capacity, including some of the world’s most geopolitically volatile regions.
Venezuela, home to the world’s largest oil reserves, was previously largely inaccessible to U.S. investors. However, following the Trump administration’s efforts to counter former leader Nicolás Maduro and take control of the country’s crude exports, Venezuela has emerged as a prominent market opening.
The U.S. government is paving the way for oil giants’ overseas expansion, reflecting Trump’s pattern of disrupting traditional business norms for American companies, particularly in favored sectors like manufacturing, fossil fuels, and cryptocurrencies. While European oil firms such as Shell, TotalEnergies, and BP are also pursuing growth in the Middle East, U.S. government backing gives Exxon Mobil and Chevron a competitive edge.
A former senior State Department official who assisted U.S. companies abroad during the Obama administration and Trump’s first term noted, “U.S. ambassadors are actively lobbying for corporate interests at a level not seen even under previous Republican administrations.”
For decades, major oil producers have operated within OPEC+ nations, but opportunities for new projects have been limited due to state-controlled oil sectors, stringent contract terms, and political instability. In recent years, large U.S. oil companies have favored domestic shale development, helping the U.S. surpass Saudi Arabia in 2018 as the world’s top oil producer.
Today, resource-rich governments eager to gain favor with the Trump administration, secure implicit U.S. protection, and avoid tariffs have created what U.S. oil executives see as the best opportunity for international expansion since the mid-2000s. Investing in some of the world’s largest oil fields would extend Trump’s push for U.S. “energy dominance” and help ensure fossil fuel supplies into the 2040s and beyond.
However, these opportunities come with significant risks. In the 1970s, a wave of nationalizations across the Middle East led to the seizure of core assets from many international oil companies. Subsequent attempts to return have often failed due to tough contract terms and political unrest. Exxon Mobil has faced two rounds of asset nationalization in Venezuela over the past 50 years, and the industry was forced to exit Russia following the invasion of Ukraine four years ago.
Oil markets have also proven volatile. In the mid-2000s, Exxon Mobil and Chevron invested heavily in large overseas projects that ran over budget and behind schedule. The oil price collapses of 2014 and 2020 dealt heavy blows to both companies.
Still, with domestic shale production growth plateauing and oil demand stronger than many forecasters expected, U.S. oil majors are actively seeking new growth avenues.
In recent months, executives from Exxon Mobil and Chevron have met with officials from Iraq, Libya, and Algeria, often accompanied by senior Trump administration officials. In August, U.S. Special Envoy Steve Witkopf helped facilitate an agreement between Exxon Mobil and Azerbaijan.
John Ardill, head of exploration at Exxon Mobil, stated in an interview, “While the priority of energy dominance aligns with our business direction, it does not dictate which countries we enter or how we enter them.”
This week, U.S. Special Envoy to Syria Thomas Barak assisted Chevron in reaching a similar agreement with Damascus. Kuwait also plans to open parts of its oil fields to attract foreign investment.
Clay Neff, president of Chevron’s upstream business, said in an emailed statement, “Pragmatic U.S. energy policies and improved regulatory and fiscal terms in resource-rich countries are creating an environment conducive to responsible investment.”
Although many agreements in the Middle East are non-binding, signs indicate that Exxon Mobil and Chevron are seriously pursuing substantive negotiations to replenish oil reserves for the next decade and beyond.
Biraj Borkhataria, an analyst at RBC Capital Markets, noted in a report, “With the U.S. government adopting a more aggressive new strategy, U.S. oil majors are gaining advantages well beyond what they might otherwise deserve, potentially securing access to resources unavailable to their European peers.”
John Ardill of Exxon Mobil added that many governments now recognize the value of flexible revenue-sharing frameworks and openness to investment over maintaining rigid control and missing opportunities. Guyana serves as a success story: after Exxon Mobil discovered oil there in 2015, daily output has neared one million barrels, making it one of the world’s fastest-growing economies.
In recent months, Exxon Mobil and Chevron executives have held separate meetings with officials from Iraq, Libya, and Algeria, often joined by senior Trump administration officials. In October, Exxon Mobil signed an agreement with Iraq to study the giant Majnoon field; months earlier, Chevron signed a similar deal for the Nassiriya project in southern Iraq. Both companies have expressed interest in taking over the West Qurna 2 field, which accounts for roughly 10% of Iraq’s oil output, after its operator Lukoil agreed to sell most of its international assets to Carlyle Group.
Some within Iraq’s political elite believe that investment from U.S. oil majors could help demonstrate Iraq’s independence from Iran and win goodwill from the Trump administration amid worsening U.S.-Iran relations. Iraqi officials, dissatisfied with the slow progress of Russian and Chinese firms, see involvement from Exxon Mobil or Chevron as a way to mitigate risks related to potential conflicts involving Iran, Israel, and the U.S. However, negotiations are stalled due to delayed government formation following November elections.
After more than a decade of civil war, Libya is also opening exploration blocks to foreign investors, estimated to hold 10 billion barrels of oil resources. The country aims to increase oil production by 40% by 2030, and both Exxon Mobil and Chevron have expressed interest in returning.
Since Trump took office a year ago, Exxon Mobil has expanded in Angola, secured offshore drilling rights in Greece, won exploration concessions in Egypt, and signed production-sharing contracts in Trinidad and Tobago near Guyana.
Chevron is in advanced talks with Kazakhstan to extend the license for the Tengiz field, which produces one million barrels per day, and has signed contracts in Suriname while increasing its exploration budget by 50% this year. The company has also bid on four offshore blocks in Greece and signed an agreement with Turkey this week.
Clay Neff of Chevron stated, “Chevron is actively pursuing exploration opportunities to further strengthen and diversify its upstream portfolio.”
Simultaneous negotiations with multiple governments allow oil companies to select the most promising investment opportunities. Ardill of Exxon Mobil emphasized that the company carefully chooses projects with favorable geology, sound commercial terms, and manageable geopolitical risks. The former State Department official added that having more options strengthens companies’ bargaining power, allowing them to pivot during fiscal negotiations.
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