The US Senate Budget Committee has initiated an investigation into suspicions of collusion between multiple domestic oil producers and the Organization of the Petroleum Exporting Countries (OPEC) concerning potential price adjustments and coordination. This investigation, aimed at reviewing the activities and communications of about 20 oil and gas producers, follows claims from Democratic Senator Sheldon Whitehouse about major energy companies like ExxonMobil, Chevron, and ConocoPhillips colluding with OPEC.
In response to Whitehouse’s letter, these companies are expected to provide any communications they have had with OPEC since January 2020. The investigation comes shortly after the FTC’s accusations against the ex-CEO of Pioneer Natural Resources Company for alleged attempts to collude with OPEC. The Senate is seeking information from these companies on any efforts to coordinate production policies with OPEC members, particularly focusing on communication related to oil production output, crude oil prices, and the connection between production and pricing of oil products dating back to early 2020.
Furthermore, the Senate is also requesting information from these companies regarding any exchanges they may have had with OPEC+ producers. This scrutiny reflects a deeper examination of potential market manipulation and the influence of major oil companies in coordination with international oil bodies like OPEC. It underscores a drive towards transparency and accountability in the energy sector to ensure fair market practices and pricing mechanisms.
