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AM Briefing

Exxon Shrugs Off Venezuela as ‘Uninvestable’

On Meta’s atom, Illinois frees nuclear, and China’s fusion milestone

An Exxon sign.
Heatmap Illustration/Getty Images

Current conditions: Snow is heading for the Northeast later this week, with some flakes in New York City on Thursday • A heatwave in central Argentina is driving up temperatures to 102 degrees Fahrenheit • A blizzard is set to dump nearly 3 feet of snow along Hokkaido’s Sea of Japan coast.


THE TOP FIVE

1. Exxon calls Venezuela “uninvestable”

The United States’ biggest oil company is brushing off President Donald Trump’s promise to restore Venezuela’s drilling industry to its former glory under American stewardship. In an address to the White House on Friday, Exxon Mobil Corp. CEO Darren Woods said that Venezuela’s

current “legal and commercial constructs” and “frameworks” make the country “uninvestable.” The country’s basic systems need “significant changes,” and its hydrocarbon laws need to be overhauled before the Texas behemoth thinks it can put money into rebuilding the infrastructure in the South American nation. Still, Woods said he was “confident that with this administration and President Trump working hand-in-hand with the Venezuelan government that those changes can be put in place.” As my colleague Robinson Meyer noted in a recent interview for the Shift Key podcast, Trump’s push for imperial resource ventures generally might be a tough sell for actual oil companies.

Exxon’s main U.S. rival, the No. 2 producer Chevron Corp., has invested heavily in Venezuela over the years. Exxon, by contrast, has developed what’s considered the most significant new oil patch in the world, the offshore drilling operations in Guyana. But Exxon still benefits from the Trump administration’s intervention in Caracas. Venezuela has long argued that Essequibo, the sparsely populated jungle province comprising the western half of Guyana, rightfully belongs under Caracas’ rule. The move to threaten Essequibo and Exxon drilling platforms off its waters with the Venezuelan military in recent years drew fierce blowback. Now it seems unlikely such agitation will happen again anytime soon. Meanwhile, Trump said Sunday he may exclude Exxon from the Venezuela spoils, claiming “they're playing too cute.”

2. Meta makes a big nuclear investment

Until now, Meta has been the most cautious nuclear investor of its tech peers, brokering just one major deal to buy power from an existing atomic power station. By contrast, Amazon bought a stake in the reactor developer X-energy and put up the money for its first power plant; Microsoft pumped billions into reopening the working reactor at Three Mile Island; and Google is both bringing another reactor back online and investing in the next-generation reactor company Kairos Power. On Friday, the Facebook owner announced a sweeping deal to buy power from the nuclear utility Vistra, help build reactors with the Bill Gates-backed startup TerraPower, and pay cash upfront to finance the purchase of fuel for microreactor developer Oklo’s first power plants in Ohio. “Our commitments to Oklo and TerraPower support the next generation of American developers creating safer, advanced nuclear reactors and accelerating the development of nuclear technologies,” the company said in a statement. “Through our partnership with Vistra, we’re providing financial support for operating nuclear power plants, extending the operational lifespan.”

3. Illinois finally lifts its ban on new nuclear reactors

Constellation's Clinton Clean Energy Center nuclear plant in Clinton, Illinois. Scott Olson/Getty Images

Illinois is the most nuclear-powered state in the nation, with atomic stations supplying nearly all of Chicago’s power at times. Yet the state put a moratorium on new reactors in the 1980s. That is, until last week when Governor J.B. Pritzker signed legislation lifting the ban. In 2023, Pritzker signed a bill that would allow for construction of more speculative technology, like small modular reactors, but maintained the ban on large-scale units. At the time, the Democrat vetoed separate legislation to legalize large-scale reactors, insisting they “are so costly to build that they will cause exorbitant ratepayer-funded bailouts.” Since no one has yet built an SMR in the U.S., there’s no way of really knowing how much the smaller units will cost. But more recent research by the Massachusetts Institute of Technology’s Koroush Shirvan finds the opposite. Building another gigawatt-sized Westinghouse AP1000 — the same type of machine that had major cost overruns in Georgia over the past decade — would be cheaper than building a first-of-its-kind SMR, since the supply chains and design are established.

“It’s striking that the same rationale Gov. Pritzker used to veto lifting the nuclear moratorium in 2023 — the prospect of new large-scale reactors in Illinois — is now being celebrated by his administration as a major win,” Madi Hilly, the managing director of the Chicago-based consultancy Radiant Energy Group, told me for this newsletter. “This reversal is a positive signal for future growth and long-term prosperity in Illinois.”

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  • 4. China’s top fusion project has broken a major new record

    China went from spending virtually nothing on nuclear fusion in 2021 to investing more than the rest of the world combined, as I told you last month. Well, it’s working. Last week, China’s leading fusion project, the Experimental Advanced Superconducting Tokamak, or EAST, pulled off a “novel high-density operating scheme” in the reactor. In the past, exceeding the limits of how dense the plasma that powers the fusion reactor could get ended up causing disruptions. “The findings suggest a practical and scalable pathway for extending density limits in tokamaks and next-generation burning plasma fusion devices,” study co-lead author Ping Zhu, an engineering professor at the University of Science and Technology in China, said in the statement to Live Science.

    5. China is scrapping export tax rebates on solar and batteries

    China plans to end its value-added tax export rebate on solar products on April 1. The finance ministry said the VAT export rebates for battery products will fall to 6% from 9% between April and December and phase out entirely at the end of this year. In a statement on the change, the China Photovoltaic Industry Association acknowledged that some Chinese exporters were, as Reuters put it, “using rebates as a price discount for foreign buyers.” This won few friends in Europe or North America, where governments who wanted strategic solar manufacturing industries saw factories close in the face of overwhelmingly cheap Chinese imports. Analysts told the South China Morning Post the policy is a signal “that Beijing is interested in serious trade relations and is a good partner.”

    THE KICKER

    Biodegradable plastics are not always safer for rivers and oceans. When researchers at East China Normal University compared how microbial cities formed on the surfaces of traditional plastics and biodegradable materials after 88 days in a tidal river in Shanghai, they found that drug-resistant bacteria proliferated on both non-biodragable and biodegradable plastics, but saw a particularly intense but short-lived spike in pathogens developing on the so-called greener material. “Our findings show that biodegradable plastics do not simply dissolve into the environment without consequence,” Yinglong Su, the study’s lead author, said in a statement. “They create a different kind of risk that peaks during degradation and should not be ignored in environmental policy.”

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