Senate Democrats Call on DOJ to Investigate Alleged Collusion and Price-Fixing in Oil Industry
Senate Democrats Call on DOJ to Investigate Alleged Collusion and Price-Fixing in Oil Industry
WASHINGTON – Senate Majority Leader Chuck Schumer and 22 other Democratic senators are urging the Department of Justice to take action against alleged collusion and price-fixing in the oil industry.
In a letter to Attorney General Merrick Garland and other officials, the Democrats cited a recent Federal Trade Commission investigation that uncovered evidence of price-fixing by oil executives, leading to higher energy costs for American families and businesses.
The FTC’s investigation revealed that Scott Sheffield, the former CEO of Pioneer Natural Resources, colluded with OPEC and OPEC+ to potentially raise crude oil prices. While the FTC cleared Exxon Mobil’s $60 billion deal to buy Pioneer, Sheffield was barred from joining the new company’s board of directors.
According to the FTC report, collusion by Pioneer and others may have cost the average American household up to $500 per car in increased annual fuel costs. Democrats called this “an unwelcome tax that is particularly burdensome for lower-income families.”
The letter called for the Justice Department to launch an industry-wide investigation into possible violations of the Sherman Antitrust Act, highlighting the national security concerns of Big Oil’s alleged collusion with OPEC.
“Corporate malfeasance must be confronted, or it will proliferate,” the letter stated. “These alleged offenses do not simply enrich corporations; hardworking Americans end up paying the price through higher costs for gas, fuel, and related consumer products.”
This latest action by Senate Democrats follows a series of partisan efforts targeting the oil industry. Democratic Sen. Sheldon Whitehouse and Rep. Jamie Raskin have also asked the Justice Department to investigate whether Exxon, Chevron, and other oil companies misled the public about the climate effects of burning fossil fuels.
Meanwhile, Republicans have criticized President Joe Biden’s energy policies, including restrictions on new oil and gas leasing and higher rates for drilling on federal lands.
The letter was signed by 23 Democrats, including Schumer, Whitehouse, Senate Commerce Committee Chairwoman Maria Cantwell, and Senate Judiciary Committee Chairman Dick Durbin.
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