Twenty-three Senate Democrats have written to Attorney General Merrick Garland requesting that the DOJ investigate the oil industry for violating the Sherman Antitrust Act.
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Oil industry accused of price fixing
Majority Leader Schumer and 22 other Senate Democrats wrote to AG Garland:
We write about our serious concerns about alleged collusion and price fixing in the oil industry. While investigating ExxonMobil's (Exxon) proposed $60 billion acquisition of Pioneer Natural Resources (Pioneer) – the largest oil and gas deal of the 21st century – the Federal Trade Commission (FTC) found evidence that founder and Former Pioneer CEO Scott Sheffield conspired with the Organization of the Petroleum Exporting Companies (OPEC) to “reduce oil and gas production, which would result in Americans paying higher prices at the pump in order to boost profits.” to blow up the company.”
These reports are alarming and reinforce fears that corporate greed is keeping prices artificially high. This is also a national security concern: This alleged collusion with OPEC may have served to enrich countries like Iran and Russia, which are actively trying to undermine the United States and our allies.
The federal government must use every tool to prevent and prosecute collusion and price fixing
have increased the costs of gasoline, diesel fuel, heating oil, and jet fuel in a way that has materially harmed virtually every American household and business. We therefore urge the Department of Justice (DOJ) to investigate the oil industry, hold any responsible actors accountable, and end all illegal activities.
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The strategy appears to have worked. From pre-pandemic times to today, industry collusion may have contributed to the 49% decline in U.S. oil production growth, the $23.41 increase in the average price of crude oil per barrel, and the increase by $0.94 in the average retail price. petrol. That means the conspiracy by Pioneer and its co-conspirators has cost the average American household up to $500 per car in higher annual fuel costs – an unwanted burden that is especially burdensome on lower-income families. Meanwhile, Western oil companies have collectively earned more than $300 billion in profits over the past two years, a rise that many market experts say cannot be explained by increased production costs due to the pandemic or inflation.
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Corporate crime must be addressed or it will spread. These alleged crimes don't just enrich companies; hardworking Americans ultimately pay the price through higher costs for gas, fuel and related consumer products. The DOJ must protect consumers, small businesses, and the public from collusion in the petroleum market, and a key part of that mission means pursuing full restitution and imposing all penalties supported by the facts and law. If oil companies or executives have violated the Sherman Act, we urge you to follow the law and seek appropriate punishment.
Trump offers to sell US energy policy to the oil and gas industry, while Democrats call for criminal investigations
In recent weeks, it has been reported that Donald Trump has offered to sell the oil industry's control of US energy policy in exchange for $1 billion in campaign contributions. An investigation has also been opened in the The US Senate is considering Trump's attempt to make a deal with Big Oil that would give them illegal access and control over US policy, to the point where the industry has pre-written executive orders for Trump to sign when he returns to the White House.
Historically, the oil industry has consistently attempted to manipulate the market to control prices and maximize profits for consumers. Most of the time, the threat of an investigation has been enough to deter the industry from ceasing market manipulation.
Senate Democrats have apparently uncovered evidence of criminal activity, so they've gone several steps further than usual and called for a criminal investigation into the industry.
The oil industry is not alone in using the pandemic as an excuse to keep prices artificially high. Research has shown that the main cause of inflation is not government policy, but corporate profiteering.
Inflation will decline once corporate America is held accountable for its potentially illegal actions. A DOJ investigation into the oil industry would put every other major company on notice that price gouging must stop.
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Jason is the editor-in-chief. He is also a White House press pool and congressional correspondent for PoliticusUSA. Jason has a bachelor's degree in political science. His graduate work focused on public policy, with a specialization in social reform movements.
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Member of the Society of Professional Journalists and the American Political Science Association
