“We cannot allow fossil fuel companies to gouge the American public in concert with OPEC while raking in record profits,” said one watchdog, calling for congressional hearings.
Consumer advocates demanded congressional hearings on alleged price fixing by oil giants on Monday after the Federal Trade Commission banned an executive from serving on the board of Chevron, saying he had colluded with international representatives to keep oil prices high.
The FTC said it would prohibit John B. Hess, CEO of the Hess Corporation, from serving on Chevron’s Board of Directors as part of Chevron’s acquisition of the company, citing Hess’ public and private communications “with the past and current secretaries-general of the Organization of Petroleum Exporting Countries (OPEC) and an official from Saudi Arabia.”
“In these communications, Mr. Hess stressed the importance of oil market stability and inventory management and encouraged these officials to take actions on these issues and speak about them at different events,” said the FTC.
The FTC’s complaint marks the second time since May that an oil executive has been accused of collusion and price fixing to ensure Americans would continue paying high prices for gas, adding an estimated $500 per year, per vehicle, in fuel costs for the average U.S. household.
Democratic lawmakers have demanded a probe by the Department of Justice into collusion by fossil fuel companies, following the FTC’s revelation that Scott Sheffield, founder of Pioneer Natural Resources, communicated with OPEC representatives via text messages, WhatsApp, and in person to encourage high oil prices.
“Americans who are struggling to make ends meet cannot afford any more price fixing collusion between Big Oil CEOs and foreign countries.”
Rep. Mark Pocan (D-Wis.) said that “jail time should seriously be considered,” highlighting the financial pain Sheffield’s actions added to households already struggling to afford groceries, childcare, and other essentials.
The five largest U.S. oil companies have reported more than $250 billion in profits over the last two years.
“We cannot allow fossil fuel companies to gouge the American public in concert with OPEC while raking in record profits,” said Tyson Slocum, director of consumer advocacy group Public Citizen’s energy program. “The FTC is lifting the veil on an effort, apparently by multiple U.S. oil companies, to communicate with foreign actors to artificially raise energy prices for American families and around the world. We reiterate the call for Congress to immediately hold hearings to investigate illegal conduct by Big Oil.”
Government watchdog Accountable.US described the news as “another Big Oil CEO caught colluding with OPEC.”
“Americans who are struggling to make ends meet cannot afford any more price fixing collusion between Big Oil CEOs and foreign countries,” said Chris Marshall, a spokesperson for the group. “They should be held accountable to make sure consumers pay a fair price at the pump.”
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