Democrats to investigate Trump's energy deals as they take Congress in January

Democrats are expected to launch a wave of investigations into President Donald Trump's energy sector deal-making when they take control of Congress in January, using subpoena power. The House Energy and Commerce Committee, likely chaired by Rep. Frank Pallone, D-N.J., intends to pursue an aggressive oversight agenda to root out corruption, Pallone said.

Democrats have pressed the White House for months on the legality of its intervention in Venezuela's oil sector and its cancellation of renewable energy projects funded by the Biden administration. They have also raised conflict of interest concerns over minerals sector deals. Until now, they could do little more than send letters. In January, they will wield subpoena power.

Washington seized control of Venezuela's oil exports in January after ousting former President Nicolás Maduro in a military raid. The Pentagon took a stake in North American Blue Energy Partners, or NABEP, to develop Venezuelan oil reserves, a deal that supposedly gives the U.S. control over 65 billion barrels of oil. Democratic lawmakers have demanded an accounting of how Venezuela's oil revenues have been spent. Democratic senators sent a letter in September to Defense Secretary Pete Hegseth and Energy Secretary Chris Wright questioning the legal basis for the NABEP deal.

Democrats have also raised conflict of interest concerns over critical minerals deals. The White House has justified the deals, often involving government equity stakes in private companies, as necessary to support a mining industry critical to national security and undercut by China. But Democratic senators pointed to the involvement of Cantor Fitzgerald in several deals. Commerce Secretary Howard Lutnick ran Cantor before joining the administration; he divested and turned over control to his sons. Senators demanded in July that the government preserve records on deals involving 14 companies. Lutnick dismissed the allegations. "If the Democrats send me letters, I will respond to the letters but they don't matter, since when you do nothing wrong, you don't worry about it and you don't care," he told CNBC in September. "This is a waste of time trying to create something that doesn't exist."

The administration has favored fossil fuels and campaigned against renewable energy, especially wind power. Democrats are unlikely to restore tax credits phased out by Trump's tax bill due to his veto power. But they will press the administration on nearly $8 billion of energy projects canceled in states that supported Vice President Kamala Harris in 2024. Energy Secretary Chris Wright told Congress the projects were not canceled for political reasons. Several House Democrats accused Wright of false testimony. Democrats are also scrutinizing efforts to kill offshore wind. The Interior Department paid TotalEnergies nearly $1 billion to cancel an offshore wind project; Total agreed to invest in natural gas instead. Reps. Jared Huffman and Jamie Raskin called the deal unlawful.

With majorities in the House and Senate, Democrats will likely pass a war powers resolution demanding an end to the conflict. Crude oil prices sold off sharply Wednesday as the market expected the election defeat to push Trump to cut a deal with Iran. Vice President JD Vance blamed the Republican loss on the war. House Minority Leader Hakeem Jeffries said Democrats will "end this reckless and costly war of choice that has skyrocketed gas prices all across the country." Rep. Ted Lieu said the new Congress will try to pass legislation to stop the conflict. Jeffries said Democrats will pass a war powers resolution, though Trump will almost certainly veto it. It is unclear whether Democrats will try to restrict war funding.

Tumbling crude prices could push gasoline below $4 per gallon next week and diesel under $6 by Thanksgiving, said Patrick De Haan of GasBuddy. But the odds still favor military escalation in the Middle East, warned Bob McNally, president of Rapidan Energy and a former energy advisor to President George W. Bush. "Iran is hardened in its uncompromising position," McNally said. "Trump, having now paid a huge price for his determination to prevent Iran from obtaining a nuclear weapon, is unlikely to let go of this legacy goal and walk away."

Source: CNBC.