Democrats Call for Investigation into Mergers Involving Exxon and Chevron

Senate Majority Leader Chuck Schumer and 22 Senate Democrats demanded that federal regulators investigate the mega takeovers signed last month by ExxonMobil and Chevron, CNN reported.

The senators warned in a letter sent on Wednesday to the Federal Trade Commission (FTC) that the record mergers are likely to reduce competition, risk increased consumer prices, limit US production, hurt smaller companies, and keep down wages.

Exxon, the largest oil company in the U.S., reached an agreement last month to purchase Pioneer Natural Resources, a rival firm, for $60 billion.

A few days later, Chevron, the second largest oil company in the U.S., announced its intention to buy Hess for $53 billion, CNN reported.

The senators called on the FTC to “closely review” the agreements for possible anticompetitive harm and stop the deals if necessary.

In the letter, the senators wrote that previous mergers that helped create Exxon and Chevron “enabled anticompetitive coordination” that harmed consumers by limiting the supply of oil.

“If anything,” the lawmakers said, the FTC should be investigating the past mergers that created Exxon and Chevron to determine if the firms “should be broken up once again.”

The Democrats also criticized Exxon and Chevron for “doubling down” on fossil fuels at a time when they said that many Americans support attempts to clean up the environment.

The FTC and Chevron did not respond to a request for comment, according to CNN.

However, Exxon said that it and Pioneer represent only some 5% of U.S. oil production combined and said the merger would be positive for the environment.

“For all those who seek even greater US energy independence and for lower emissions, this merger represents nothing but upside for our economy and our environment given that ExxonMobil has the resources to get more out of the ground and do it at vastly improved emissions levels,” Exxon said in a statement to CNN.