Democrats set to probe $8 billion in cancelled energy deals next year
New congressional control gives lawmakers subpoena power to examine Iran war costs, Venezuela oil controls, and critical minerals conflicts of interest.
By Ricardo Alvarez ·
Democratic leaders will use their new committee control to launch formal investigations into the Trump administration's energy policies when Congress convenes in January. The opposition party previously could only send letters to White House officials. Once they hold the majority in the House and Senate, they gain the authority to compel testimony and force the release of internal documents.
The first major target is the ongoing conflict with Iran. House Minority Leader Hakeem Jeffries stated that Democrats intend to end what he called a reckless and costly war of choice that has driven up gas prices. The group plans to pass a war powers resolution to demand a halt to the conflict, though President Trump is expected to veto the measure. Crude oil prices dropped sharply this week as markets anticipated a potential deal. Patrick De Haan, head of petroleum analysis at GasBuddy, projected that gasoline could fall below $4 per gallon in the coming week and diesel under $6 by Thanksgiving.
A second focus is the U.S. takeover of Venezuelan oil exports. The Pentagon took a stake in North American Blue Energy Partners, a deal that allegedly grants Washington control over 65 billion barrels of oil. Democratic lawmakers have questioned the legal basis for this arrangement and warned the industry of potential civil liability from creditors holding nearly $200 billion in debt to Venezuela. Senators sent a letter in September to Defense Secretary Pete Hegseth and Energy Secretary Chris Wright demanding an accounting of how these revenues are being spent.
The third area of scrutiny involves critical minerals deals. Democratic senators have raised conflict of interest concerns over government equity stakes in private mining companies. They specifically pointed to the role of Cantor Fitzgerald in several transactions. Commerce Secretary Howard Lutnick, who led the firm before joining the cabinet, dismissed the concerns. He told CNBC in September that Democrats are trying to create something that does not exist and that his team simply answers their silly questions.
Finally, Democrats will examine the cancellation of renewable energy projects. The administration has halted nearly $8 billion worth of projects in states that supported Vice President Kamala Harris in 2024. Energy Secretary Chris Wright has testified that political considerations did not drive these decisions, but several House Democrats have accused him of giving false testimony. The Interior Department also paid TotalEnergies nearly $1 billion to cancel an offshore wind project. Rep. Jared Huffman and Rep. Jamie Raskin called that deal unlawful and opened an investigation in April.
