A group of Democratic lawmakers is investigating if shale oil companies colluded to manipulate oil prices, potentially affecting their federal land leases and operations.
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.
The Energy Department will start with an initial request for 3 million barrels, asking companies for the barrels to be delivered in February, an official said.
The impact of oil sanctions on Russia is limited compared to the severe repercussions they have on the global economy and other countries’ abilities to achieve energy security and transition.
The release is the third in the past five months and would be by far the largest amount ever injected by the U.S. government into the market, amounting to about 5 percent of daily demand.
