WASHINGTON, June 4 (Reuters) -
A group of Democratic U.S. House lawmakers asked the Justice
Department on Tuesday to probe allegations of antitrust behavior
among U.S. oil producers and OPEC and said the two largest U.S
oil companies have been conspiring to keep fuel prices high.
Nine House of Representatives Democrats, in a letter to
Attorney General Merrick Garland, cited a complaint by the
Federal Trade Commission (FTC) in May that alleged that the
former CEO of Pioneer Resources engaged in an "outrageous
scheme... to coordinate pricing between U.S. oil companies and
foreign producers."
The letter, led by Jerrold Nadler, the top Democrat on
the House Judiciary Committee, also cited the big profits earned
last year by Exxon Mobil Corp ( XOM ) and Chevron ( CVX ), the
two largest U.S. oil companies.
"Major oil producers appear to be colluding with each
other and foreign cartels to keep prices high, padding their
profits at the expense of American consumers," the lawmakers
said.
"We urge you to use the full authority of the Department
of Justice to investigate and, where necessary, prosecute this
anticompetitive conduct," the letter said.
On Exxon and Chevron ( CVX ), the lawmakers said: "But
apparently, instead of passing those profits through to
consumers in the form of cheaper products, the oil giants have
been lining their own pockets while conspiring to keep prices
high."
Exxon and Chevron ( CVX ) did not immediately respond to a
request for comment.
The Organization of the Petroleum Exporting Countries
also did not immediately respond to a request for comment.
In addition to Nadler, the letter was signed by Henry
Jackson, Pramila Jayapal and seven other Democrats.
Last month, the FTC approved 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.
Late last month, U.S. Senate Majority Leader Chuck
Schumer and 22 of his Democratic colleagues
sent a similar letter
to Garland.
Sheffield coordinated efforts with U.S. shale oil
producers to constrain their output and raise energy prices, the
FTC said on May 2.
Sheffield, known for his long tenure and frank comments
on industry output and spending, used his influence "to align
oil production across the Permian Basin in West Texas and New
Mexico with OPEC+," a production group that includes Russia as
well as OPEC members, the FTC said at the time.
Sheffield's lawyers have referred to comments made last
month, when Sheffield 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.