WASHINGTON — Senate Majority Leader Chuck Schumer and 22 other Democratic senators are advising federal regulators to examine multibillion-dollar acquisitions by oil giants ExxonMobil and Chevron, stating the offers might lead to greater rates at the gas pump.
In a letter Wednesday to the Federal Trade Commission, the legislators stated Exxon’s proposed $60 billion acquisition of Pioneer Natural Resources and Chevron’s proposed $53 billion purchase of Hess Corp. are 2 of the biggest petroleum offers in U.S. history and might breach antitrust law.
“These offers are mostlikely to damage competitors, runningtheriskof increased customer rates and decreased output throughout the United States,” the senators composed. The offers threaten to damage little operators and reduce salaries, they included.
The letter is signed by 23 senators, consistingof Minnesota Sen. Amy Klobuchar, chair of the Judiciary Committee’s antitrust panel, and antitrust hawks such as Sens. Elizabeth Warren of Massachusetts and Bernie Sanders of Vermont.
While advocates have argued that the international market for oil and gas is so big that even dominant companies such as Exxon or Chevron cannot limit worldwide capability, “the FTC should thinkabout how Exxon’s or Chevron’s vertically incorporated operations might damage American competitors in spite of the worldwide market,” the senators composed.
A spokesperson for the FTC stated the firm had got the letter however decreased more remark.
Chevron, Exxon and other oil business have revealed substantial earnings from strong energy costs and need because Russia’s intrusion of Ukrain