Oil CEOs come to Washington. Are gas prices about to fall?
Plus, how Tulsi Gabbard has been excluded on Venezuela planning since last summer, and President Trump’s grip on the GOP in Congress.
Good morning. Trump moves fast.
Less than one week after the U.S. military swooped into Venezuela and captured the country’s leader, Nicolás Maduro, the president will meet with energy industry chief executives Friday about his plan to dramatically expand drilling in the South American country.
Trump wants to pump so much oil out of Venezuela that he pushes oil prices down to around $50 a barrel.
There are a TON of things in flux with this effort, but here are some key issues to watch:
1. Treasury Secretary Scott Bessent said on Thursday that big oil companies have so far been reluctant to jump at the opportunity to boost drilling in Venezuela, citing in part their “corporate boards" and a “lot of bureaucracy."
2. The process of overhauling Venezuela’s creaking energy infrastructure and pumping out enough oil to move markets could be very expensive, but Trump seems very committed even if it takes multiple years.
3. The average price of gasoline now is roughly $2.82, down about $0.25 from a year ago. That’s good for Trump, in the eyes of consumers, but low energy prices could cause problems in areas that rely on energy jobs, particularly in places like Ohio and Pennsylvania. Something to watch later this year.
4. Congress isn’t on board with Trump’s Venezuela plan. In fact, the Senate voted Thursday to make it harder for him to send U.S. troops to the country without their support (to guard energy assets?). Does he now proceed with more caution?
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People and Policies I’m Watching
Oil CEOs at the White House: The leaders of the U.S.’s biggest oil companies are expected to meet Trump at 2:30 p.m. ET, following the weekend’s ousting of Venezuela’s Nicolás Maduro.
December jobs numbers: The Bureau of Labor Statistics will release the jobs report for December at 8:30 a.m. ET.
Trump’s Friday: President Trump is expected to meet with Secretary of State Marco Rubio at 11 a.m. ET.
What I’m Following
U.S.’s top intelligence officer was sidelined from Venezuela planning. White House officials excluded the director of national intelligence, Tulsi Gabbard, from Venezuela meetings since last summer. This move highlights Gabbard’s increasing isolation and waning influence amid her struggle to penetrate the inner circle of officials who influence Trump’s thinking.
Trump’s risky fixation with other countries’ oil. The Venezuela operation reflects a long-held desire to leverage military might into control over energy—though falling prices are hurting U.S. producers.
U.S. targets shadow fleet as warning to adversaries to stay out of Venezuela. The Trump administration’s seizure of tankers under an oil embargo is meant to warn adversaries attempting to gain a foothold in the Western Hemisphere and boost Washington’s influence in Latin America.
Trump is calling on Fannie Mae and Freddie Mac to buy mortgage bonds. The president said the government-backed mortgage-finance companies would buy $200 billion in mortgage bonds, part of a broader effort to address a sharp rise in the cost to own a home. There were few details provided on how the purchases would be executed or when.
What Else Is Happening
Democrats win ACA round as divisions plague Republicans.The attorney defending ousted Venezuelan President Nicolás Maduro is known as the ’pit bull,’ a nickname earned early in his career.The president demonstrates his grip on GOP lawmakers, as the House upholds his vetoes on two Republican-led bills.Vice President JD Vance defends ICE agent who shot a Minnesota woman dead.A judge disqualifies prosecutor leading civil-rights probe of Letitia James.
What I’m Reading
Josh Shapiro’s Reelection Campaign in Pa. Starts Now—but 2028 Looms Large (Philadelphia Inquirer)CDC’s Updated Childhood Vaccine Schedule Creates Chaos for Georgia Doctors (Atlanta Journal-Constitution)Local Politicians, Doctors Respond to Trump Administration’s New Alcohol Guidelines (Press Democrat)
This Week in Washington History
During this week in 1973, the trial began for the seven men accused of breaking into the Democratic Party headquarters at the Watergate hotel. The fallout from the case, which became known as Watergate, led to President Richard Nixon’s resignation the following year.
About Me
I’m Damian Paletta, The Wall Street Journal’s Washington coverage chief. I’ve covered Washington for 22 years as a reporter and editor. I’ve covered the White House, Congress, national security, the federal budget, economics and multiple market meltdowns.WSJ Politics brings you an expert guide to what’s driving D.C., every weekday morning. Send your feedback to politics@wsj.com (if you’re reading this in your inbox, you can just hit reply). This edition was curated and edited in collaboration with Alistair Dawber and Yolanda McBride. Got a tip for us? Here’s how to submit.
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