US Senate probes oil producers on OPEC+ collusion claims

The US Senate’s budget committee launched a probe last week into domestic oil giants about any efforts for “illegally coordinating” with OPEC+ countries to limit US production and inflate oil prices.

PHOTO: The east side of the US Capitol pictured in the morning. Getty Images

The US Senate’s budget committee will probe 18 companies including oil giants ExxonMobil, Chevron, Shell, BP and ConocoPhillips.

“Mounting evidence suggests the oil and gas industry may be illegally coordinating with foreign cartel to depress production and raise prices on consumers,” the official statement read.

This probe follows the US Federal Trade Commission’s (FTC) removal of former chief executive officer of Pioneer Natural Resources, Scott Sheffield, from ExxonMobil’s board for allegedly working with OPEC+ producers to manipulate oil production and increase prices, and “boost his company’s profits,” the US Senate’s budget committee said.

“The FTC completed its investigation as part of its review of ExxonMobil’s bid to acquire Pioneer, a $64.5 billion deal that represents the largest fossil fuel merger in 20 years,” the committee said. It claimed that such illegal crude oil “price-fixing schemes” have caused an increase of more than 25% in inflationary pressures.

The American Petroleum Institute (API) called Washington’s probe an “election year stunt,” Reuters reports.

The US Senate has given time until 12 June for the companies to provide substantial evidence of any communications between them and the OPEC+ members concerning oil output, crude oil prices, and the relation between the production and pricing of oil products from January 2020 to the present.

Last month, a group of nine Democrat members of the US House of Representatives requested the Justice Department to investigate the potential antitrust violations made by US oil producers and the Organization of the Petroleum Exporting Countries (OPEC), Reuters reports.

By Aparupa Mazumder 

Please get in touch with comments or additional info to news@engine.online