Press Release
Posted:
Washington, D.C. – Ranking Member of the Ways and Means Subcommittee on Tax Policy Rep. Mike Thompson (CA-04) led fellow Ways and Means Democrats in issuing a warning to oil companies considering doing unlawful business with the Trump Administration in Venezuela that Congress may reconsider their tax benefits.
On January 3, 2026, the Trump administration conducted a military operation in Venezuela without an express authorization from Congress. In subsequent public statements, the President indicated that U.S. oil companies could be granted access to Venezuelan oil reserves and suggested that significant costs associated with such activities could ultimately be borne by the United States. Public reporting shows some oil companies have expressed willingness to engage under this framework.
“We believe that U.S. commercial engagement with Venezuelan oil resources under these circumstances raises serious concerns. In particular, proceeding in the absence of congressional authorization and without negotiations involving a democratically elected Venezuelan government risks undermining core constitutional principles, exposing U.S. taxpayers to financial risk, and placing U.S. servicemembers in harm’s way without clear legal or policy justification,” said the members of Congress.
“These concerns warrant careful scrutiny to ensure that federal tax benefits are applied in a manner consistent with longstanding congressional intent and broader U.S. interests,” they continued.
Thompson was joined by Representatives Lloyd Doggett, John Larson, Danny Davis, Linda Sánchez, Terri Sewell, Suzan DelBene, Judy Chu, Brendan Boyle, Don Beyer, Dwight Evans, Brad Schneider, Jimmy Panetta, Jimmy Gomez, Steven Horsford, and Tom Suozzi. Thompson sent copies of the lawmakers’ letter to ExxonMobil, Shell, ConocoPhillips, and Chevron.
Read the full letter below:
We are writing to convey serious concerns regarding public reporting that certain U.S. energy companies may seek to pursue new commercial opportunities involving Venezuelan oil resources in light of recent developments. Based on those reports, we are carefully examining whether such activities align with the principles that have historically guided federal tax policy and the responsible stewardship of taxpayer resources.
As you are aware, on January 3, 2026, the Trump administration conducted a military operation in Venezuela without an express authorization from Congress. In subsequent public statements, the President indicated that U.S. oil companies could be granted access to Venezuelan oil reserves and suggested that significant costs associated with such activities could ultimately be borne by the United States, either directly or indirectly through revenue arrangements. Public reporting has since indicated that certain industry participants and financial interests have expressed willingness to engage under this framework.
We believe that U.S. commercial engagement with Venezuelan oil resources under these circumstances raises serious concerns. In particular, proceeding in the absence of congressional authorization and without negotiations involving a democratically elected Venezuelan government risks undermining core constitutional principles, exposing U.S. taxpayers to financial risk, and placing U.S. servicemembers in harm’s way without clear legal or policy justification.
Congress has an obligation to assess whether federal tax policy continues to reflect the public trust and the purposes for which such provisions were enacted, particularly when those policies intersect with matters of war powers, democratic legitimacy, and the use of public funds. These concerns warrant careful scrutiny to ensure that federal tax benefits are applied in a manner consistent with longstanding congressional intent and broader U.S. interests. Thank you for your full and fair consideration of this matter.