Trump Oil Deal Blindsides US Energy Companies

Summary

Bloomberg and WSJ reporters discuss the Trump administration's Venezuela oil deal with North American Blue Energy Partners, which US oil executives say blindsided incumbent companies. They explain the deal is unlikely to lower gasoline prices before the midterms and raises questions about production scalability and profit-sharing. The conversation also touches on Russia-Ukraine peace talks and Pentagon leak investigations.

• US oil executives felt blindsided by the Venezuela deal.
• The deal with North American Blue Energy Partners leaves fewer fields and lease packages for other companies.
• The company has mostly rehabilitated old PDVSA fields, not developed new large-scale production.
• Gasoline prices are unlikely to fall before the November midterms.
• The profit-sharing arrangement is unusual and administered by a little-known Pentagon office.
• Kushner and Witkoff are in Moscow and expected in Ukraine to test stalled peace talks.
• Pentagon polygraph tests of joint staff are creating fear and signaling leadership distress.