Staff Reports
Senate Democrats, led by Majority Leader Charles E. Schumer, are urging the Justice Department to launch an investigation into potential collusion and price fixing within the oil industry. The inquiry was initiated through a letter directed to Attorney General Merrick Garland and Assistant Attorney General Jonathan Kanter, who supervises the Antitrust Division of the DOJ. Schumer, along with Senators Amy Klobuchar, Maria Cantwell, and Elizabeth Warren, emphasized the need for the federal government to take action to prevent and prosecute any collusion and potential price fixing that led to increased fuel costs.
Chuck Schumer and other Democratic senators ask DOJ to probe oil industry for price fixing, collusionhttps://t.co/7dTpsQsoy7 pic.twitter.com/nQFakHLbC0
— The Washington Times (@WashTimes) May 31, 2024
The letter specifically referenced evidence uncovered by the Federal Trade Commission during its examination of ExxonMobil’s proposed acquisition of Pioneer Natural Resources. The investigation revealed potential collusion between Scott Sheffield, the founder and former CEO of Pioneer, and the Organization of the Petroleum Exporting Countries (OPEC) to decrease oil and gas production, causing prices at the pump to rise and boosting profits for Sheffield’s company. The Democratic senators argued that such actions have had a detrimental impact on American households and businesses by significantly increasing costs for gasoline, diesel fuel, heating oil, and jet fuel.
Additionally, the senators highlighted the national security implications of the alleged collusion, suggesting that it may have contributed to the enrichment of countries like Iran and Russia, which are known for their adversarial stance towards the United States and its allies. The Democrats emphasized the need for thorough investigation and potential prosecution of any wrongdoing in the oil industry to safeguard the interests of the American people and the nation as a whole.
