A group of 22 Democratic Senators led by Majority Leader Chuck Schumer have issued a call on the Department of Justice to investigate a claim made by the Federal Trade Commission that the former CEO of Pioneer Natural Resources had colluded with OPEC to keep oil prices high.
"These reports are alarming and lend credence to the fear that corporate avarice is keeping prices artificially high," the group said in the letter they sent to Attorney General Merrick Garland, as quoted by Reuters.
The allegations by the FTC refer to actions taken in 2020 when U.S. crude oil prices took a dive because of lockdowns and briefly dipped below zero, threatening the continued survival of a significant portion of the industry.
"We therefore urge the Department of Justice to investigate the oil industry, to hold accountable any liable actors, and to end any illegal activities," the senators also wrote.
FTC accused Sheffield of colluding 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.
The FTC also made its approval of the merger contingent on Sheffield being banned from joining the board of the combined company.
In response to these claims, Scott Sheffield said earlier this week the trade regulator had scapegoated him.
"The FTC is wrong to imply that I ever engaged in, promoted or even suggested any form of anti-competitive behaviour," Sheffield said in his first public response to the allegations.
"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," Sheffield also said, as quoted by the Financial Times.
By Irina Slav for Oilprice.com
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Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry. More
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