The Federal Trade Commission (FTC) is being urged to reject petitions from oil executives at Chevron/Hess and Exxon/Pioneer, following their involvement in efforts to manipulate oil prices through alleged coordination with OPEC.
Public Citizen, a consumer advocacy group, is leading the charge, urging the FTC to stand firm on its earlier rulings that aim to curb anti-competitive behavior in the oil industry.
“The FTC correctly found the merger between Chevron and Hess to be a violation of antitrust laws due to Mr. Hess’s collusion with OPEC to fix prices,” said Public Citizen in a statement. The group argued that allowing executives like Hess and Pioneer’s Scott Sheffield to join major oil company boards could further harm competition and keep energy prices inflated, hurting American consumers.
The FTC’s original orders bar both Hess and Sheffield from joining the boards of Chevron and Exxon, respectively, due to their roles in coordinating oil supply with OPEC, which could restrict domestic production and keep prices high. Public Citizen pointed out that this coordination came at a time when U.S. inflation reached over 9%, with energy costs playing a significant role in the price spike.
“Coordinating oil production with OPEC directly harms American families,” the group noted. The advocacy group argues that the original FTC orders are critical in preventing these executives from using their positions to continue anti-competitive behavior, which could drive up gas prices, already soaring from $2.50 per gallon in January 2021 to $5.00 in June 2022.
As the petitioners push for a reopening of the case, Public Citizen stresses the importance of maintaining the integrity of final settlements, especially when they are made in the public interest. “Reopening this case could set a dangerous precedent,” the group warned, suggesting that such actions would embolden corporate wrongdoers while weakening consumer protections.
The FTC is expected to make a decision soon on whether it will grant these petitions, which could significantly impact the U.S. oil market and consumer prices.
