Thirty-three Senate Democrats have written to Attorney General Merrick Garland to ask the DOJ to investigate the oil industry for violations of the Sherman Antitrust Act.
Read: Samuel Alito Is The Insurrectionist Threat To Democracy On The Supreme Court
Oil Industry Accused of Fixing Prices
Majority Leader Schumer and 22 other Senate Democrats wrote to AG Garland:
We are writing about serious concerns about alleged collusion and price fixing in the oil industry. While investigating ExxonMobil’s (Exxon) proposed $60 billion acquisition of Pioneer Natural Resources (Pioneer) – the largest oil-and-gas deal of the 21st century – the Federal Trade Commission (FTC) found evidence that Pioneer founder and former CEO Scott Sheffield colluded with the Organization of Petroleum Exporting Companies (OPEC) to “reduce oil and gas output, which will cause America to pay higher prices at the pump, to inflate profits for the company.
These reports are alarming and give credence to fears that the company is keeping prices high. This is also a national-security concern: this alleged collusion with OPEC may result in countries like Iran and Russia actively seeking to undermine the United States and our allies.
The federal government must use all tools to prevent and prosecute collusion and fix prices where possible
has increased the cost of gasoline, diesel fuel, heating oil, and jet fuel in a way that is hurting almost every American household and business. Therefore, we call on the Department of Justice (DOJ) to investigate the oil industry, hold responsible actors accountable, and stop illegal activities.
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The strategy seems to be working. From the pre-pandemic era to the present, industry collusion has resulted in a 49% decrease in the growth rate of US oil production, a $23.41 increase in the average price of crude oil per barrel, and a $0.94 increase in the average retail price. gasoline. That means the collusion of Pioneer and its co-conspirators could cost the average American household as much as $500 per car in increased annual fuel costs — an unwelcome tax that is especially heavy on low-income families. Meanwhile, Western oil majors have collectively made more than $300 billion in profits over the past two years, a surge that market experts believe cannot be explained by increased production costs from the pandemic or inflation.
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Corporate misconduct must be confronted, or it will grow. These alleged violations didn’t just add to the company; Hardworking Americans will pay the price through higher costs for gas, fuel, and related consumer products. The DOJ must protect consumers, small businesses, and the public from petroleum market collusion, and an important part of that mission means seeking full restitution and imposing all penalties supported by the facts and the law. If an oil company or executive has violated the Sherman Act, we urge you to follow the law and seek appropriate punishment.
Trump Offers to Sell US Energy Policy to Oil and Gas Industry as Democrats Call for Criminal Investigation
In recent weeks, it has been reported that Donald Trump has offered to sell the oil industry control over US energy policy in exchange for $1 billion in campaign donations. An investigation was also opened in the US Senate into Trump’s attempt to make a deal with Big Oil that would give him illegal access and control of US policy until the industry has written an executive order for Trump to sign if he returns to the White House.
Historically, the oil industry has constantly tried to manipulate the market to control prices and maximize profits for consumers. Usually, the threat of an investigation is enough to make the industry back away from market manipulation.
Senate Democrats have found what appears to be evidence of criminal activity, so they’ve gone a step further than usual and called for a criminal investigation into the industry.
The oil industry isn’t just using the pandemic as an excuse to artificially keep prices up. Research has found that the main cause of inflation is not government policy, but corporate profiteering.
Inflation will decrease if corporate America begins to take responsibility for actions that may be illegal. The DOJ investigation into the oil industry will tell every other big company that prices need to stop.
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Jason is the managing editor. He is also the White House Press Pool and Congressional correspondent for PoliticusUSA. Jason has a Bachelor’s degree in Political Science. Graduate work focused on public policy, with a specialization in social reform movements.
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