U.S. Senate Majority Leader Chuck Schumer and 22 other Democratic Senators have requested that the Attorney General investigate allegations of collusion and price fixing between the oil industry and the Organization of the Petroleum Exporting Countries (OPEC).
The request comes after the Federal Trade Commission (FTC) recently approved Exxon Mobil’s $60 billion acquisition of Pioneer Natural Resources, but barred former Pioneer CEO Scott Sheffield from joining Exxon’s board. The FTC accused Sheffield of attempting to collude with OPEC to raise oil prices.
In a letter to Attorney General Merrick Garland and the DOJ’s antitrust chief Jonathan Kanter, the senators described the reports as “alarming” and said they lend credence to the fear that “corporate avarice is keeping prices artificially high.” The senators called on the DOJ to investigate the oil industry and hold any liable actors accountable for any illegal activities.
The FTC had alleged that Sheffield, widely considered the “dean of U.S. shale” due to his long tenure and outspoken comments on industry output and spending, used his influence to align oil production across the Permian Basin with OPEC+’s efforts to constrain supply and raise energy prices.
Sheffield’s lawyers have disputed the FTC’s claims, stating that “at no time did government officials and Mr. Sheffield exchange competitively sensitive information.” Earlier this week, Sheffield asked the FTC to dismiss the ban on him joining Exxon’s board.
The senators’ request for a DOJ investigation underscores the ongoing political scrutiny over high energy prices and allegations of potential collusion or anti-competitive behavior within the oil industry. The outcome of any DOJ probe could have significant implications for the sector and its relationship with OPEC.