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Pentagon office takes 35% stake in Venezuela oil venture

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The Trump administration’s oil agreement with Venezuela represents the riskiest venture to date for a Pentagon unit originally established for an entirely different purpose.

The White House announced this week that the Office of Strategic Capital (OSC), an entity operating under the Department of Defence, will acquire a 35% stake “at no cost to American taxpayers” in North American Blue Energy Partners, a firm headed by politically connected Venezuelan investor Alejandro Betancourt.

The objective is to make Venezuelan oilfields more attractive to US investors, thereby increasing revenue for Caracas whilst simultaneously squeezing out Chinese and Russian firms.

According to the Council on Foreign Relations (CFR), the OSC has already facilitated equity acquisitions in at least five other companies during President Donald Trump’s second term. The OSC was created to provide loans for the development of critical technologies.

However, because the Venezuelan agreement involves petroleum rather than conventional critical technology, it stretches the agency’s statutory boundaries even further and has already prompted Democrats to pledge congressional investigations.

Should Democrats regain power in Washington this November, any oversight drive could place the office’s efforts to secure state equity positions in private corporations under intense scrutiny.

In an interview with Semafor, a former OSC official stated:

“Acquiring equity was never intended when the OSC was founded; that circumstance alone does not necessarily constitute a problem. Nevertheless, it raises some legitimate legal and ethical questions.”

Jon Hillman, who directs the council’s tracking system, noted in an interview that the Venezuelan oil deal “appears to be uncharted territory”, adding that the office’s “mission is to catalyze private investment into specific, critical supply chain technologies necessary for national security.”

The statute that established the OSC defines its authority to provide “capital support” as extending and guaranteeing loans and offering technical assistance.

A Pentagon spokesperson initially told Reuters that the office was “not acquiring equity” in private enterprises due to this constrained remit.

On Tuesday, however, a US official offered a contrasting account to journalists, stating that the authority to acquire a stake in Betancourt’s company via “penny warrants” was “granted to the OSC when it was enacted into law under the Biden administration.”

A “penny warrant” is a financial contract that confers upon its holder the right to purchase corporate shares at a negligible, nominal price.

The US official added:

“This is an entirely standard arrangement in terms of the OSC’s capacity to maintain the financial position it holds under this agreement, and all financial positions granted to the OSC comply fully with the law.”

Peter Harrell, a visiting scholar at Georgetown University Law Center, said in an interview that it was “impossible to render a definitive legal opinion” because officials had “not advanced a precise legal theory.”

Harrell added that the Trump administration may be banking on no party possessing either the legal standing or the inclination to bring a lawsuit over the transaction.

That calculation encompasses oil corporations hoping to profit from the newly reopened Venezuelan petroleum sector.

Cari Stinebower, an attorney at the law firm Steptoe who advises petroleum firms seeking to conduct business in Venezuela, said: “I suspect everyone may be quietly perplexed. Yet I do not believe anyone will speak out, because virtually everyone wants to participate in the investment opportunities in Venezuela.”

Jack Reed, the senior Democrat on the Senate Armed Services Committee, is among those already demanding further particulars regarding the agency’s statutory authority to conclude the agreement.

Certain Republicans are likewise keen to obtain additional information concerning the Venezuelan deal.

The Biden administration formed the OSC in 2022 to provide loans to businesses developing technologies deemed “vital” to national security.

Recent legislative initiatives aimed at formally expanding its authority to encompass equity investments have so far foundered.

Yet under the direction of Deputy Secretary of Defence Steve Feinberg, the administration pressed forward regardless, enlisting bankers to help deploy a lending authority that surged from $1 billion to $200 billion courtesy of recent party-line Republican tax legislation.

The current director of the OSC, David Lorch, previously served as a managing director at Cerberus Capital Management, the private equity firm founded by Feinberg.

America

Musk boosts Republican midterm funding despite pledge to curb spending

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The world’s richest person, Elon Musk, has donated $276 million over the past three months to political action committees and conservative organizations supporting Republicans ahead of the upcoming US midterm elections.

The latest transfer brings the total midterm donations from Musk, the chief executive of Tesla and SpaceX, to $366 million.

First reported by The New York Times, the figures were confirmed to The Hill by a spokesperson for America PAC, which Musk founded. These latest expenditures establish Musk as the largest known donor of the 2026 midterms.

The bulk of Musk’s financial backing between July and September was directed towards congressional races.

The US billionaire transferred $158 million to the Senate Leadership Fund, a super PAC supporting Republican Senate candidates, and $20 million to the Congressional Leadership Fund, which finances House Republicans.

Millions divided among various committees

Musk, who provided more than $76 million during the period to America PAC, an entity he founded during the 2024 election cycle, also funded state-level contests.

The businessman transferred $10 million to the Lone Star Liberty PAC, which supports Texas Republican Senate candidate Ken Paxton, while donating $10 million to the Republican Governors Association and $2 million to the Republican Attorneys General Association.

In statements given to The New York Times and confirmed by The Hill, America PAC spokesperson Andrew Romeo argued that if Democrats take control in Washington and win critical state races, the country faces the risk of becoming one with indefensible borders.

Romeo said the investments enable the Republican apparatus to deliver its messages to voters.

Field spending continues despite talk of retreat

Musk, who kept his distance from politics for many years, entered the arena by spending hundreds of millions of dollars for Donald Trump during the 2024 election.

Accompanying Trump on campaign trails, Musk subsequently took charge of the Department of Government Efficiency (DOGE), which sparked controversy through federal employment and budget cuts.

Musk stepped down from his White House role in late May 2025 and remained politically quiet for months following a public rift with Trump.

After announcing last May that he would sharply scale back his political spending, Musk told The Economist in a July interview that he had become overly involved in politics and had gone too far.

Despite those remarks, Musk pressed ahead with political activity in July by authorizing America PAC to spend between $100 million and $120 million on a fresh field operation aimed at driving conservative voter turnout in the 2026 midterms.

Having repaired ties with Trump following their public spat, Musk joined the US president on an official visit to China in May and was also present during Chinese President Xi Jinping’s visit to Washington last month.

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Trump weighs presidential memorandum to cut surging US diesel prices

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US President Donald Trump is reportedly preparing to issue a new presidential directive soon in a bid to rein in escalating diesel prices across the country.

According to a report by the Reuters news agency citing three oil industry sources, the White House is weighing the enactment of the prepared package of measures directly in the form of a presidential memorandum.

The memorandum in question will reportedly instruct multiple US federal agencies to find and implement ways to lower diesel fuel costs, primarily by expanding oil extraction operations and refinery output.

White House plans to deploy Defense Production Act

According to information shared in the report, the Trump administration is exploring legal avenues to overcome restrictions imposed on energy production by state administrations and local government authorities.

The administration could reportedly invoke the Cold War era Defense Production Act to that end.

The legislation in question grants the US president the authority to provide state loans and financial guarantees to expand the production of materials of strategic importance. The law also makes it possible to require private companies to prioritise government orders.

Reuters reported that the White House is comprehensively examining the prospect of putting this legal mechanism into effect.

In contrast, oil refinery executives were noted to have made a recommendation to government officials last month.

Industry representatives suggested allocating federal budget resources toward modernising existing operational refineries and expanding their capacity, rather than establishing new facilities from scratch.

Plant managers stated that building new facilities would require substantially more time and higher costs.

The Wall Street Journal newspaper also highlighted in a report published in mid September that US-based oil companies were warning of the onset of a global fuel crisis.

The newspaper noted that during the period in question, diesel prices broke records, whilst the price per barrel of crude oil approached the $101 mark.

American Automobile Association (AAA) data show that as of Thursday, 8 October, the average diesel fuel price nationwide stood at $6.28 per gallon (approximately 3.8 litres).

High fuel costs pose risk ahead of congressional elections

It was pointed out that the increase in diesel fuel prices creates political risks for the Republican Party ahead of the congressional elections to be held on 3 November.

It was noted that the outcome of the vote will determine whether Republicans can maintain their majority in Congress.

Because diesel is heavily consumed in freight transport, the agricultural sector, and home heating in particular, price rises in the fuel were stressed as driving headline inflation higher.

Trump previously announced that he had reached an understanding with Russian President Vladimir Putin regarding the supply of Russian diesel fuel to both the American and global markets. The US president also thanked Putin for the arrangement concerning Russian diesel.

The US Department of the Treasury extended a temporary waiver licence permitting commercial transactions involving Russian diesel fuel until 7 April 2027.

Under the delivery schedule shared by Donald Trump, Russia will immediately ship more than 300,000 tonnes of fuel.

Shipments will reportedly continue with 500,000 tonnes in November, followed by the delivery of an additional 1 million tonnes of fuel. Over the remainder of the process, Moscow could send a further 3 million tonnes of diesel depending on the overall technical condition of refineries.

Following the announcement of the consensus between the two leaders, US diesel futures fell by approximately 5% to reach $4.64 per gallon.

Meanwhile, energy analysts consulted by Reuters express doubt as to whether the additional shipments arriving from Russia will suffice to secure a lasting price decline across the markets.

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Thiel targets Pope and Obama over AI in new ‘Antichrist’ lectures

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Peter Thiel has argued that former President Barack Obama and Pope Leo XIV are stoking public fears over artificial intelligence merely to enhance their own popularity.

In newly disclosed “Antichrist” lectures obtained by Politico, Thiel specifically targeted the two leaders while warning against the Antichrist, which he sees as halting technological progress and advocating a regulatory “one-world government”.

“A lot of people know that AI is politically unpopular, and they want to use that to boost their own popularity,” Thiel reportedly said during his address in Nashville.

Thiel continued:

“Both Obama and the pope fall into this category. Obama knows that Democrats have no ideas, but at least they can oppose AI.”

Obama recently called on Democrats to develop a comprehensive approach to the regulation of artificial intelligence.

Referring to Leo’s first encyclical on AI, “Magnifica Humanitas”, Thiel said: “The Church needed a politically popular issue to divert attention from child sexual abuse scandals, and it found it in AI.”

On the pontiff, he stated verbatim:

“AI is the greatest threat to late modernity. The pope realizes this. That is why he wrote his first encyclical… The Church needed a politically popular issue to divert attention from child sexual abuse scandals, and it found it in AI.”

In recent months, Pope Leo has gone on the offensive against artificial intelligence. The leader of the Catholic world recently said that this technology could create a “paradise of machines” that could endanger humanity.

Thiel’s relationship with the Catholic Church is fraught. This spring, largely in response to Thiel’s earlier lectures on the “Antichrist”, Vatican adviser Father Paolo Benanti penned an article entitled “The American Heresy: Should We Burn Peter Thiel?”

Throughout the lectures, Thiel framed familiar technology debates in religious terms.

Citing Matthew 24:24, for instance, the investor quoted:

“For false christs and false prophets will arise and perform great signs and wonders, so as to deceive, if possible, even the elect.”

Regarding this verse, he asked in Nashville: “And what about the psychology of the Antichrist? Could he see himself as the Christ?”

In his Nashville lectures, he also delved into the concept of the “Katechon”, drawn from the Second Epistle to the Thessalonians, which restrains the arrival and rise to power of the Antichrist.

Figures who may have briefly assumed the role of the Katechon throughout history included Charlemagne and Klemens von Metternich.

“If anti-communism is the Katechon holding back communists trying to create a communist one-world state, then neoliberalism is anti-communism in a world without communists,” Thiel said.

In both San Francisco and Nashville, Thiel devoted a significant portion of his opening lecture to addressing “effective altruism”.

This ideology rests on the premise that human beings should always act to minimise existential risk to the species and maximise positive long-term impact.

Many effective altruists and affiliated groups are based in San Francisco and work on artificial intelligence research.

In Nashville, Thiel criticised their ideas. This stance reflects the fact that they have dominated much of the recent AI safety debate, showing Thiel’s concern over the growing influence of this group.

Thiel stated:

“One reason [the effective altruists’] strategy works, of course, is that an apocalypse is impossible to undo. You only have one planet. Even Greta [Thunberg] was right about that. … So you can’t just ignore the risks. But we must also take seriously that when you establish a near-totalitarian one-world government empowered to stop all dangerous scientific work, undoing that will not be easy either… There is no historical example suggesting this global warden would willingly surrender power. Effective altruist ideology has brainwashed a significant portion of the people working on AI.”

The remarks delivered by Thiel in his lectures on 28 September and on Monday provide a rare glimpse into the conservative tech billionaire’s shifting political priorities over time.

Thiel’s opposition to regulation is not new. That perspective is widely shared among Silicon Valley venture capitalists.

What distinguishes Thiel from his peers in the conservative tech sector is his decision to frame political disputes in religious terms while simultaneously attacking the leader of the Catholic Church.

This shift could reverberate across the political arena. Thiel was an early backer of President Donald Trump and served as a major financial sponsor of Vice President JD Vance’s transition from venture capital into politics.

Politico noted that Thiel’s attacks on the church could complicate matters for Vance, a Catholic convert.

Democrats positioning themselves for the 2028 presidential election have already begun targeting Vance over his ties to the billionaire investor.

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