A group of Democratic lawmakers in the U.S. House of Representatives called on the Justice Department on Tuesday to investigate alleged antitrust activities by U.S. oil producers and the Organization of the Petroleum Exporting Countries (OPEC). They specifically accused the two largest U.S. oil companies, Exxon Mobil Corp and Chevron Corp, of conspiring to keep fuel prices artificially high.
In a letter addressed to Attorney General Merrick Garland, nine House Democrats, led by Jerrold Nadler, the ranking Democrat on the House Judiciary Committee, referenced a Federal Trade Commission (FTC) complaint from May. The complaint accused the former CEO of Pioneer Natural Resources of orchestrating a scheme to coordinate pricing between U.S. oil companies and foreign producers.
The lawmakers expressed concern over the significant profits reported by Exxon Mobil and Chevron last year. “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,” the letter stated.
The lawmakers urged the Department of Justice to fully utilize its authority to investigate and, if necessary, prosecute such anticompetitive conduct. They accused Exxon and Chevron of prioritizing their profits over consumer interests by allegedly conspiring to maintain high prices rather than passing savings on to consumers.
Exxon Mobil has denied the FTC’s allegations, stating they are “entirely inconsistent with how we do business.” Chevron and OPEC did not immediately respond to requests for comment.
The letter was also signed by Representatives Henry Jackson, Pramila Jayapal, and seven other Democrats. This call to action follows the FTC’s recent approval of Exxon Mobil’s $60 billion acquisition of Pioneer Natural Resources, which included a provision barring former Pioneer CEO Scott Sheffield from Exxon’s board due to allegations he attempted to collaborate with OPEC to elevate oil prices.
Additionally, U.S. Senate Majority Leader Chuck Schumer and 22 Democratic senators sent a similar letter to Garland late last month. The FTC has accused Sheffield of coordinating efforts with U.S. shale oil producers to limit output and elevate energy prices. According to the FTC, Sheffield used his influence to align oil production in the Permian Basin with OPEC+, a group that includes Russia alongside OPEC members.
Sheffield’s legal team has denied these allegations, with his counsel, Cleary Gottlieb Steen & Hamilton, asserting that there was no exchange of competitively sensitive information between Sheffield and government officials.
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