House Democrats Call for Investigation into Big Oil for Alleged Price Gouging

A group of House Democrats has urged the Department of Justice to initiate an investigation into the oil industry. They suspect that the two largest energy companies in the U.S., Exxon and Chevron, are conspiring to keep fuel prices high.

Accusations of Conspiracy

A letter was sent to the Department of Justice by Rep. Jerrold Nadler and was co-signed by nine other House members. They argued that the record-breaking profits reported by Exxon and Chevron last year were evidence of a conspiracy against American consumers to maintain high fuel prices. The letter stated, "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. and Chevron Corp., both earned their biggest annual profits in a decade. 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."

Allegations of Collusion with OPEC

The letter also accused the U.S. oil industry of collusion with OPEC and OPEC+. The authors wrote, "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." This accusation of collusion with OPEC follows charges made against the former CEO of Pioneer Natural Resources by the Federal Trade Commission during Exxon's acquisition of the company. The FTC claimed that Scott Sheffield had colluded with OPEC and OPEC+ members to limit production and increase oil prices. These allegations have sent shockwaves through the shale oil industry, where several large consolidation deals are awaiting approval from the trade watchdog. In response, Sheffield stated that the charges were baseless 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."

Conclusion

These recent developments raise questions about the integrity of the oil industry and its impact on consumers. If these allegations are true, they could have far-reaching consequences for the industry and consumers alike. What are your thoughts on these accusations? Share this article with your friends and let us know your thoughts. Remember, you can sign up for the Daily Briefing, which is delivered every day at 6pm.