A group of House Democrats have called on the Department of Justice to launch a probe into the oil industry, accusing the two largest U.S. energy companies of a conspiracy to keep fuel prices high.
In a letter sent to the Department of Justice by Rep. Jerrold Nadler and signed by nine more House members, the group claimed that the record profits that Exxon and Chevron reported last year were proof they were conspiring against Americans by keeping fuel prices high.
"By any measure, these are good times for oil companies in the United States. Last year, the two largest U.S. oil companies, Exxon Mobil Corp. ("Exxon") and Chevron Corp. ("Chevron"), both earned their biggest annual profits in a decade," the House Democrats wrote.
"But apparently, instead of passing those profits through to consumers in the form of cheaper products, the oil giants have been lining their own pockets while conspiring to keep prices high."
The letter also accused the U.S. oil industry of colluding with OPEC and OPEC+, with its authors writing that "If U.S. oil companies are colluding with each other and foreign cartels to manipulate global oil markets and harm American consumers who then pay more at the pump, Congress and the American people deserve to know."
The OPEC collusion accusation follows charges leveled at the former CEO of Pioneer Natural Resources by the Federal Trade Commission during Exxon's takeover of the company.
The FTC alleged that Scott Sheffield had colluded with OPEC and OPEC+ members to limit production and increase oil prices in comments on its approval of Exxon's acquisition of Pioneer. The allegations shook the shale oil world, where several large consolidation deals are awaiting the trade watchdog's approval.
Sheffield hit back by saying there was no merit to the charges and that "Publicly and unjustifiably vilifying me will have a chilling effect on the ability of business leaders in any sector of our economy to address shareholder demands and to exercise their constitutionally protected right to advocate for their industries,"
By Irina Slav for Oilprice.com
More Top Reads From Oilprice.com:
Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry. More