Senate Majority Leader Chuck Schumer and 22 other Democratic senators have urged the Department of Justice to take action against alleged collusion and price-fixing in the oil industry. In a letter addressed to Attorney General Merrick Garland and other officials, the Democrats highlighted a recent Federal Trade Commission investigation that uncovered evidence of price-fixing by oil executives, resulting in higher energy costs for American families and businesses.
The FTC investigation revealed that Scott Sheffield, former CEO of Pioneer Natural Resources, colluded with OPEC and OPEC+ to potentially raise crude oil prices. Although the FTC cleared Exxon Mobil's $60 billion deal to acquire Pioneer, Sheffield was barred from joining the new company’s board of directors.
The Democrats emphasized that collusion by Pioneer and other oil companies may have led to increased annual fuel costs for the average American household, amounting to up to $500 per car. They expressed concerns over the significant profits earned by major oil companies in recent years, which they believe cannot be solely attributed to production costs or inflation.
The letter called for an industry-wide investigation into possible violations of the Sherman Antitrust Act, citing national security concerns related to Big Oil's alleged collusion with OPEC. The Democrats stressed the importance of holding corporations accountable for their actions to protect consumers, small businesses, and the public from market collusion.
Separately, Democratic lawmakers have requested a Justice Department investigation into whether Exxon, Chevron, and other oil companies misled the public about the climate impacts of burning fossil fuels. This follows a multiyear investigation that uncovered new documents revealing the industry's efforts to deceive the public and hinder climate action.
Meanwhile, Republicans have criticized President Joe Biden's energy policies, including restrictions on oil and gas leasing and higher drilling rates on federal lands. Sen. John Barrasso accused the president of making energy production economically unfeasible on federal lands.
The letter signed by 23 Senate Democrats, including Schumer, Whitehouse, Cantwell, and Durbin, marks the latest effort to address concerns of collusion and misconduct in the oil industry.
