A group of Democratic U.S. House lawmakers have called on the Department of Justice (DOJ) to investigate allegations of antitrust behavior among U.S. oil producers and the Organization of the Petroleum Exporting Countries (OPEC). The lawmakers cited a complaint by the Federal Trade Commission (FTC) in May, which alleged that the former CEO of Pioneer Resources engaged in a scheme to coordinate pricing between U.S. oil companies and foreign producers.
The letter, led by Jerrold Nadler, the top Democrat on the House Judiciary Committee, also highlighted the significant profits earned last year by Exxon Mobil Corp and Chevron, the two largest U.S. oil companies. The lawmakers argued that these oil giants have been “lining their own pockets while conspiring to keep prices high” instead of passing those profits through to consumers in the form of cheaper products.
Exxon has dismissed the FTC’s allegations as “entirely inconsistent with how we do business.” Chevron did not immediately respond to a request for comment, and OPEC also did not respond to a request for comment.
The lawmakers urged the DOJ to use its full authority to investigate and, if necessary, prosecute this alleged anticompetitive conduct. They argued that “major oil producers appear to be colluding with each other and foreign cartels to keep prices high, padding their profits at the expense of American consumers.”
This call for an antitrust investigation comes after a similar letter was sent to the Attorney General last month by Senate Majority Leader Chuck Schumer and 22 of his Democratic colleagues.