U.S. Senate Majority Leader Charles Schumer on Nov. 1 urged the U.S. Federal Trade Commission to consider possible anti-competitive harms stemming from recent multi-billion dollar acquisitions by oil and gas giants Exxon Mobil and Chevron Corp.
Earlier this month, Exxon proposed to buy Pioneer Natural Resources for nearly $60 billion and Chevron agreed to acquire Hess for $53 billion.
The Democratic Senate leader said in a letter that the two of the largest oil and gas deals of this century are "likely to harm competition."
The recent oil deals are a financial flex by U.S. oil and gas companies that have kept investing in fossil fuels as European rivals turned their attention to renewable fuels.
Chevron and Exxon have accumulated huge profits from strong energy prices and demand since Russia's invasion of Ukraine.
"By allowing Exxon and Chevron to further integrate their extensive operations into important oil-and-gas fields, these deals are likely to harm competition, risking increased consumer prices and reduced output throughout the United States," Schumer said in his letter.
The oil industry last went through an era of major consolidation in the late 1990s when Exxon, Shell, BP and France's TotalEnergies merged with rivals to create huge integrated companies. The acquisitions followed a collapse in oil prices that weakened many companies.
"If anything, the FTC should be investigating the past anti-competitive mergers of Big Oil conglomerates like Exxon Mobil and Chevron to determine whether these energy giants should be broken up once again," Schumer added.
Several other Democrats also signed the letter.
Recommended Reading
US Republican Attorneys General Sue to Stop EPA's Carbon Rule
2024-05-09 - The rule, finalized by President Joe Biden's administration last month as part of an effort to combat climate change, was challenged in three lawsuits filed in the U.S. Court of Appeals for the District of Columbia Circuit.
Analyst: Exxon Mobil, Pioneer Deal Close Likely ‘Imminent’
2024-05-01 - With approval from the Federal Trade Commission, Exxon Mobil could close its $59.5 million acquisition of Pioneer Natural Resources after more than six months of review.
Oil, Gas Production Fee Set to Hit Colorado Producers
2024-05-01 - The deal reached this week will eliminate several proposed ballot measures targeting the fossil fuel industry ahead of this year's election, including one that would have halted drilling in summer months.
Guyana’s Stabroek Boosts Production as Chevron Watches, Waits
2024-04-25 - Chevron Corp.’s planned $53 billion acquisition of Hess Corp. could potentially close in 2025, but in the meantime, the California-based energy giant is in a “read only” mode as an Exxon Mobil-led consortium boosts Guyana production.
US Interior Department Releases Offshore Wind Lease Schedule
2024-04-24 - The U.S. Interior Department’s schedule includes up to a dozen lease sales through 2028 for offshore wind, compared to three for oil and gas lease sales through 2029.