The U.S. Senate budget committee on June 27 launched a probe of domestic oil producers about any efforts to illegally coordinate oil prices with the Organization of the Petroleum Exporting Countries, in the latest effort by Democratic lawmakers to pressure energy companies.
The producers the committee is probing include Exxon Mobil, Chevron, ConocoPhillips and 14 others. Those three major energy companies did not immediately responded to requests for comment. Two of the other big companies in the group, BP and Shell, declined to comment.
Interest among many Democratic lawmakers in possible collusion among oil companies with production groups spiked last month after the U.S. Federal Trade Commission (FTC) barred former Pioneer Natural Resources CEO Scott Sheffield from Exxon's board on allegations he attempted to collude with OPEC to raise oil prices. The FTC made the move as it approved Exxon's $60 billion purchase of Pioneer.
Sheffield has denied the FTC's allegations.
Senator Sheldon Whitehouse, a Democrat and the chairman of the Budget committee, called for the probe of the companies.
"Based on recent events involving Pioneer Natural Resources ... I am concerned about the possibility that oil and gas companies could be engaging in collusive, anti-competitive activities with OPEC+ that would raise crude oil prices, resulting in higher costs not only for American families, but also for the U.S. government when it acquires crude oil for the Strategic Petroleum Reserve," Whitehouse said in a statement.
OPEC+ is a production group that includes OPEC and Russia, that has agreed to cut production. The administration of President Joe Biden is slowly replenishing the SPR after it sold 180 MMbbl from the reserve in 2022 in an attempt to keep fuel prices in check following Russia's invasion of Ukraine.
The American Petroleum Institute (API) industry group called Whitehouse's probe an "election year stunt."
API spokesperson Bethany Williams said: "This is yet another election-year stunt to distract from misguided policies as the administration continues to look to foreign producers to meet growing demand for affordable, reliable energy."
Biden, a Democrat, hopes to win reelection in November. Whitehouse, of Rhode Island and a top advocate for strong policies on curbing climate change, is running for a fourth term in the U.S. Senate.
Earlier this month a group of nine Democrats in the U.S. House of Representatives asked the Justice Department to probe allegations of antitrust behavior among U.S. oil producers and OPEC.
In May, U.S. Senate Majority Leader Chuck Schumer and 22 of his Democratic colleagues sent a similar letter to Attorney General Merrick Garland.
Whitehouse asked the companies to provide by July 12 any communications between them and members of the OPEC Secretariat and OPEC+ concerning oil output, crude oil prices and the relationship between the production and pricing of oil products from January 2020 to the present.
OPEC did not immediately respond to a request for comment.
Recommended Reading
Predictions 2025: Downward Trend for Oil and Gas, Lots of Electricity
2025-01-07 - Prognostications abound for 2025, but no surprise: ample supplies are expected to keep fuel prices down and data centers will gobble up power.
Belcher: Heed the Harsh Lessons from Europe’s Net-Zero Perils
2024-12-30 - The EU’s aggressive climate stance is wreaking economic havoc and mounting regulations could hurt the U.S. LNG industry.
Pickering on Permian: Marginal Barrels, Stripper Wells, More
2024-12-02 - As the Permian Basin matures and global oil demand grows, Dan Pickering, chief investment officer for Pickering Energy Partners, offers his thoughts on the basin’s future, costs, demand and the price of oil.
DOE: ‘Astounding’ US LNG Growth Will Raise Prices, GHG Emissions
2024-12-17 - The Biden administration released Dec. 17 a long-awaited report analyzing the effects of new LNG export projects, which was swiftly criticized by the energy industry.
Guyana Exported a Total of 225 Crude Cargoes in 2024
2025-01-14 - Guyana, Latin America's newest oil producer, is now the region's fifth largest crude exporter after Brazil, Mexico, Venezuela and Colombia.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.