Stop an Unauthorized U.S. Takeover of Venezuelan Oil

STOP A VENEZUELA OIL DEAL THAT LACKS CLEAR CONGRESSIONAL AUTHORITY As a constituent, I urge you to prevent the Executive Branch from giving the United States a controlling financial interest in Venezuelan oil assets for up to 100 years without express congressional authorization, full disclosure, and congressional control of federal spending. President Trump has announced an agreement under which the United States would obtain majority control connected to about 65 billion barrels of Venezuelan oil reserves. Reporting indicates that a new joint venture would hold 100-year development contracts covering 17 fields, with the U.S. government receiving an ownership interest and an effective 55 percent share. FEDERAL OWNERSHIP REQUIRES CLEAR LEGAL AUTHORITY Buying crude for the Strategic Petroleum Reserve is one thing. Making the United States a controlling participant in a foreign petroleum venture is something very different. The administration should identify the specific constitutional and statutory authority that permits the federal government to acquire or control this ownership interest. An international agreement cannot by itself give a federal agency spending, investment, corporate-ownership, or borrowing powers that Congress never granted it. CONGRESS CONTROLS THE MONEY Congress should determine whether this arrangement creates direct expenditures, loan guarantees, purchase commitments, contingent liabilities, or other financial exposure for the United States. The Pentagon has reportedly said that its Office of Strategic Capital may provide loans, loan guarantees, or technical assistance but cannot take ownership stakes in private companies. Congress should not let this arrangement become a fait accompli before lawmakers and the public see the agreement and its claimed legal authority. Congress need not oppose Venezuelan oil development to defend its constitutional role. It should insist that no President may commit the United States to a century-long foreign commercial venture without showing where Congress authorized both the power and the money. I urge you to: (1) DISCLOSE THE DEAL. Require production of the agreement, side agreements, guarantees, financing commitments, and the administration’s claimed legal authority. (2) HOLD HEARINGS. Conduct public hearings with the Cabinet officials responsible for negotiating, financing, and implementing the transaction. (3) FREEZE FEDERAL FUNDS. Bar expenditures, loans, guarantees, equity purchases, purchase commitments, or other federal obligations unless specifically authorized and appropriated by Congress. (4) REQUIRE REVIEW. Ask the Government Accountability Office to examine statutory authority, appropriations issues, contingent liabilities, and taxpayer risks. (5) REQUIRE AUTHORIZATION. Bar federal acquisition of a controlling equity interest in foreign natural-resource ventures unless Congress expressly authorizes it. Thank you.