Why ExxonMobil sees Azerbaijan as investable while Venezuela remains high-risk |
Possession of abundant natural resources has long been regarded as a defining economic asset for nations - yet it can also present significant challenges. Whether resources become a lasting foundation of prosperity or a source of political and economic vulnerability hinges on governance. Effective management requires governments to cultivate a stable legal and regulatory environment that can attract and retain long‑term investment, while also safeguarding national interests and resource ownership. Oversight, commercial predictability, and mutual trust between host states and investors are central to this balance.
Current tensions in the United States illustrate these dynamics in practice. In early 2026, President Donald Trump publicly encouraged major U.S. energy companies to commit substantial capital to revitalizing Venezuela’s oil industry, a push that followed dramatic political events in that country. However, ExxonMobil’s CEO described Venezuela as “uninvestable” under existing conditions, citing concerns over legal protections and commercial frameworks that would be necessary for major capital deployment. This prompted President Trump to suggest that ExxonMobil might be excluded from future investment opportunities there, underscoring the political and strategic complexity of resource‑sector decisions.
The U.S.-Venezuela episode highlights a broader point: natural‑resource development is not automatic wealth. Investment decisions by global energy firms are shaped not only by resource potential, but by perceptions of legal certainty, investment protection, and political stability. In jurisdictions where these elements are viewed as uncertain, even large reserves may remain untapped.
By contrast, Azerbaijan’s long‑standing cooperation with ExxonMobil........