WASHINGTON (AP) — Senate Majority Leader Chuck Schumer and 22 other Democratic senators are urging federal regulators to investigate multibillion-dollar acquisitions by oil giants ExxonMobil and Chevron, saying the deals could lead to higher prices at the gas pump.
In a letter Wednesday to the Federal Trade Commission, the lawmakers said Exxon’s proposed $60 billion acquisition of Pioneer Natural Resources and Chevron’s proposed $53 billion purchase of Hess Corp. are two of the largest petroleum deals in U.S. history and could violate antitrust law.
“These deals are likely to harm competition, risking increased consumer prices and reduced output throughout the United States,’’ the senators wrote. The deals threaten to harm small operators and suppress wages, they added.
The letter is signed by 23 senators, including Minnesota Sen. Amy Klobuchar, chair of the Judiciary Committee’s antitrust panel, and antitrust hawks such as Sens. Elizabeth Warren of Massachusetts and Bernie Sanders of Vermont.
While supporters have argued that the global market for oil and gas is so large that even dominant firms such as Exxon or Chevron cannot restrict global capacity, “the FTC must consider how Exxon’s or Chevron’s vertically integrated operations may harm American competition in spite of the global market,” the senators wrote.
A spokesman for the FTC said the agency had received the letter but declined further comment.
Chevron, Exxon and other oil companies have announced huge profits from strong energy prices and demand since Russia’s invasion of Ukraine in February 2022. Exxon reported $9.1 billion in profits in the quarter that ended Sept. 30, while Chevron reported $6.5 billion in profits.
Exxon said in a statement that the proposed deal with Texas-based Pioneer Resources would enhance U.S. energy security and benefit the American economy and consumers.
“For all those concerned about competition, the fact that the two companies combined represent about…
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