Senate Democrats challenge Pentagon's planned Venezuela oil stake

Four Democratic senators—Jeanne Shaheen, Jack Reed, Martin Heinrich, and Elizabeth Warren—are questioning the legal authority of the Pentagon to acquire a 35 percent stake in a Venezuelan oil producer. In a letter addressed to Secretary of State Marco Rubio, Secretary of War Pete Hegseth, and Energy Secretary Chris Wright, the senators argued that the statute establishing the Department of Defense’s Office of Strategic Capital (OSC) does not explicitly grant the power to take equity stakes in private oil companies.

The senators stated that the OSC is intended to issue and guarantee loans to private U.S. companies to strengthen the defense industrial base and develop critical technologies, making the proposed deal “inconsistent with that authority.” They further expressed concerns that the agreement might not lower energy costs for Americans and could potentially interfere with Venezuela’s political transition.

A Department of War official indicated that the department will respond directly to the correspondence.