U.S. Senate Majority Leader Charles Schumer on Nov. 1 urged the U.S. Federal Trade Commission to consider possible anti-competitive harms stemming from recent multi-billion dollar acquisitions by oil and gas giants Exxon Mobil and Chevron Corp.
Earlier this month, Exxon proposed to buy Pioneer Natural Resources for nearly $60 billion and Chevron agreed to acquire Hess for $53 billion.
The Democratic Senate leader said in a letter that the two of the largest oil and gas deals of this century are "likely to harm competition."
The recent oil deals are a financial flex by U.S. oil and gas companies that have kept investing in fossil fuels as European rivals turned their attention to renewable fuels.
Chevron and Exxon have accumulated huge profits from strong energy prices and demand since Russia's invasion of Ukraine.
"By allowing Exxon and Chevron to further integrate their extensive operations into important oil-and-gas fields, these deals are likely to harm competition, risking increased consumer prices and reduced output throughout the United States," Schumer said in his letter.
The oil industry last went through an era of major consolidation in the late 1990s when Exxon, Shell, BP and France's TotalEnergies merged with rivals to create huge integrated companies. The acquisitions followed a collapse in oil prices that weakened many companies.
"If anything, the FTC should be investigating the past anti-competitive mergers of Big Oil conglomerates like Exxon Mobil and Chevron to determine whether these energy giants should be broken up once again," Schumer added.
Several other Democrats also signed the letter.
Recommended Reading
Blackstone in Talks to Buy US Pipeline Stakes from EQT for $3.5B, Sources Say
2024-10-28 - If the talks are successful, the deal would help natural gas producer EQT slash the debt pile it accumulated from its acquisition of pipeline operator Equitrans Midstream earlier this year.
SCF Partners Acquires Newpark Fluid Systems
2024-09-16 - SCF Partners acquired Newpark Fluid Systems, an oil and gas and geothermal fluids solution business, from Newpark Resources, for a base price of $127.5 million.
Service Companies Innovex, Dril-Quip Complete Merger
2024-09-06 - The combined onshore and offshore services companies Dril-Quip Inc. and Innovex Downhole Solutions, are expected to generate more than $1 billion in annual revenue.
Northampton Affiliate to Partially Acquire Altius Renewables
2024-09-12 - An affiliate of Northampton Capital Partners will acquire all of Altius Renewable Royalties’ outstanding common shares for total consideration of approximately CA$162 million (US$120 million).
Oxy Nears $4.5B Debt Reduction Target Post Barilla Draw Sale
2024-08-19 - Occidental Petroleum, which paid $12 billion to acquire CrownRock LP, looks to achieve 85% of its near-term debt reduction target of $4.5 billion by the end of the third quarter 2024, says Oxy CEO Vicki Hollub.
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.