collusion
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Lawmakers investigate potential shale collusion affecting federal land leases
A group of Democratic lawmakers is investigating if shale oil companies colluded to manipulate oil prices, potentially affecting their federal land leases and operations.
In short:
- Democratic lawmakers have asked the Department of the Interior to consider suspending or banning oil companies from federal land leases due to alleged antitrust violations.
- An FTC investigation found evidence suggesting at least eight major shale producers, including ExxonMobil and Pioneer, engaged in collusion to drive oil prices up.
- The lawmakers' request follows the FTC’s six-month review of the ExxonMobil-Pioneer merger, which allowed the merger but restricted Pioneer’s former CEO from joining ExxonMobil’s board.
Key quote:
“If a company is found guilty of something like collusion, we have regulations in place that make them ineligible to hold a lease in the future.”
— Liz Klein, Bureau of Ocean Energy Management Director
Why this matters:
Collusion among shale producers could artificially inflate oil prices, burdening consumers and violating antitrust laws. Regulatory actions against these companies could disrupt their operations and impact their financial stability.
Related EHN coverage:
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GOP accuses Wall Street firms of climate collusion
House Republicans released a report accusing major investment firms of colluding with climate groups to push for environmentally friendly investing, sparking a new controversy over ESG practices.
In short:
- House Judiciary Committee Republicans claim BlackRock, State Street, and Vanguard are part of a “climate cartel.”
- The report targets activist group Climate Action 100+ for allegedly pressuring asset managers to adopt climate-focused investments.
- The GOP criticizes the Biden administration for not investigating these alleged collusions.
Key quote:
“Investors who undertake investor stewardship on climate change are pursuing a common-sense approach driven by the pursuit of delivering the best long-term returns for their clients and beneficiaries.”
— Climate Action 100+ spokesperson
Why this matters:
This controversy highlights the political tension over ESG investing, which influences how major firms allocate resources and address climate change. With extreme weather events becoming more frequent and severe, the urgency for sustainable solutions has never been greater. Advocates argue that the financial sector must play a pivotal role in this transformation by redirecting capital towards projects and companies that support a low-carbon future.
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Chesapeake Energy, a shale pioneer, files for bankruptcy protection
The company helped turn the United States into a gas exporter but became known for an illegal scheme to suppress the price of oil and gas leases.
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