WASHINGTON, May 30 (Reuters) - U.S. Senate Majority
Leader Chuck Schumer and 22 other Democratic Senators on
Thursday asked the Attorney General to investigate allegations
of collusion and price fixing between the oil industry and the
Organization of the Petroleum Exporting Countries (OPEC).
Earlier in May, the Federal Trade Commission gave the
go-ahead to Exxon Mobil's ( XOM ) $60 billion purchase of
Pioneer Natural Resources, but barred former Pioneer CEO Scott
Sheffield from Exxon's board on allegations he attempted to
collude with OPEC to raise oil prices.
"These reports are alarming and lend credence to the fear
that corporate avarice is keeping prices artificially high," the
senators said in a letter to Attorney General Merrick Garland
and his antitrust chief Jonathan Kanter.
"We therefore urge the Department of Justice to investigate
the oil industry, to hold accountable any liable actors, and to
end any illegal activities," the letter said.
Sheffield coordinated efforts with U.S. shale oil producers
to constrain their output and raise energy prices, the Federal
Trade Commission said on May 2.
Widely considered the dean of U.S. shale because of his long
tenure and blunt comments on industry output and spending,
Sheffield used his influence "to align oil production across the
Permian Basin in West Texas and New Mexico with OPEC+," the FTC
added at the time.
Sheffield's lawyers did not immediately respond to a request
for comment.
Earlier this week, he asked the FTC to dismiss the ban. "At
no time did government officials and Mr. Sheffield exchange
competitively sensitive information," said Sheffield's counsel
Cleary Gottlieb Steen & Hamilton.