The U.S. Senate Budget Committee is launching an investigation into allegations of illegal collusion between oil producers and OPEC to raise prices. Led by Chairman Sheldon Whitehouse, the committee is requesting documents from 18 oil companies, including industry giants like Exxon Mobil, BP, and Chevron.
Whitehouse expressed concerns about the possibility of anti-competitive activities that could lead to higher crude oil prices, ultimately impacting American families. The documents being sought include communications related to oil production and prices between company officials and OPEC members from January 2020 to present.
The investigation comes after the Federal Trade Commission raised suspicions about Scott Sheffield, former head of Pioneer Natural Resources, allegedly communicating with OPEC and U.S. peers regarding oil pricing and production. The FTC has referred the matter for a potential criminal investigation, although Sheffield denies the allegations.
Both Pioneer and Sheffield vehemently deny the accusations, calling them a false narrative and misinterpretation of the facts and evidence. The American Petroleum Institute dismissed the probe as an “election-year stunt”, emphasizing that U.S. producers have increased production to record levels despite policies that could harm consumers and jeopardize the country’s energy advantage.
As the investigation unfolds, the oil industry faces scrutiny over potential illegal activities that could impact global oil prices and consumer costs. Stay tuned for updates on this developing story.
