FTC Probes Oil Executives’ Texts for OPEC Collusion

FTC Probes Oil Executives’ Texts for OPEC Collusion

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Julianne Geiger

Julianne Geiger is a musty editor, creator and researcher for Oilprice.com, and a member of the Ingenious Mavens Networking Neighborhood.

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By Julianne Geiger – Jul 19, 2024, 3:30 PM CDT

The U.S. Federal Alternate Price (FTC) is intensifying its scrutiny of the oil and gas sector, specializing in communications between executives at most necessary companies such as Hess Corp., Occidental Petroleum Corp., and Diamondback Vitality Inc. The FTC’s investigation seeks to search out out if these executives improperly coordinated with OPEC officials, doubtlessly violating U.S. antitrust approved guidelines.

Investigators are in quest of proof of collusion, in particular discussions about pricing and oil production ranges. Such coordination could well well well consequence in elevated oil prices and never more aggressive markets, which is illegal below U.S. regulation. The FTC’s latest focal point on these companies is section of a broader investigation into several mergers throughout the change, in particular these fascinating companies operating in the Permian Basin, North The United States’s most prolific oil discipline.

Present inclinations bear heightened the stakes. In Would possibly maybe maybe well, the FTC uncovered loads of of texts between Pioneer Pure Sources Co. founder Scott Sheffield and OPEC officials, connected to market dynamics. These messages were stumbled on throughout the evaluation of Exxon Mobil Corp.’s $63 billion acquisition of Pioneer. The invention resulted in stipulations on the deal, alongside with Sheffield’s exclusion from Exxon’s board.

Sheffield has denied any wrongdoing, accusing the FTC of unjustly vilifying him.

Nonetheless, the agency is now in moderation examining govt communications from varied companies, browsing for same proof of collusion.

This investigation coincides with a U.S. Senate funds committee probe into alleged collusion between virtually 20 tremendous oil and gas producers and OPEC. Senator Sheldon Whitehouse, echoing the FTC’s allegations in opposition to Sheffield, has claimed that change executives were working with OPEC to constrain production and drive up prices. The Senate has demanded that these companies, alongside with BP, Shell, and ConocoPhillips, provide communications with OPEC officials relationship help to January 2020.

By Julianne Geiger for Oilprice.com

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Julianne Geiger

Julianne Geiger is a musty editor, creator and researcher for Oilprice.com, and a member of the Ingenious Mavens Networking Neighborhood.

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