Financial Services Association, May 23 (Editor Niu Zhanlin) According to media reports, the US House of Representatives has launched an investigation into the country's major oil companies because the latter may have “illegally colluded” with OPEC and then profiteed by raising oil prices. Earlier this month, US federal regulators charged an energy industry leader with engaging in illegal acts to raise oil prices.

On Tuesday evening EST, Frank Palon, a senior member of the US House Energy and Commerce Committee, sent a letter to various oil companies, including ExxonMobil, Chevron, and Hess, requesting that these companies provide a large number of documents and communication materials.

New Jersey Democrat Palon wrote in the letter: “If American oil companies collude with each other and cooperate with foreign monopolies to manipulate the global oil market, harm the interests of American consumers, and make them pay higher prices at gas stations, then Congress and the American people have a right to know.” He also mentioned that these companies must respond to the committee by June 5.

Earlier, the US Federal Trade Commission (FTC) made shocking allegations against Scott Sheffield, founder and former CEO of Pioneer Natural Resources. The allegations include Sheffield sending OPEC representatives hundreds of pieces of information on market dynamics, including pricing and production levels.

The FTC pointed out that while Sheffield is widely regarded as a leading figure in the US shale oil industry, he is using his position to cooperate with oil producers and OPEC to limit their production and raise energy prices. He also urged US oil producers to maintain “self-discipline” in terms of production.

Antitrust investigations

Palon said he is concerned that Sheffield's actions may represent common practices across the industry. What is even more disturbing is that Sheffield seems to be trying to encourage other US oil producers to follow in his footsteps and collude with OPEC to push up energy costs at the expense of American consumers.

OPEC and its partners can coordinate production among member states, but US oil companies are prohibited from doing so; otherwise, they may face antitrust investigations, and US federal law prohibits price manipulation and acts that may limit competition.

Palon pointed out that in recent years, OPEC Union policies have failed to have much impact on American consumers because US oil producers can provide sufficient supply according to market demand and price changes, thereby protecting American consumers from oil price manipulation. Palon emphasized the importance of complying with antitrust and competition laws to ensure that American consumers are not adversely affected by foreign oil groups.

But now, public data shows that during the period when Sheffield tried to influence rivals, American oil producers did not increase drilling and production.

Therefore, Palon asked the oil company to hand over a series of documents, including all correspondence between each company's employees involved in production and OPEC representatives, a list of people participating in OPEC activities, communication records between executives of different oil companies, etc.

Earlier this month, the FTC approved ExxonMobil's mega deal to buy Pioneer for $64.5 billion, but banned Sheffield from joining ExxonMobil's board of directors. Additionally, Sheffield could face criminal charges.

Pioneer previously issued a statement saying it disagreed with the FTC's accusations and was “surprised” by them, saying it had misunderstood the nature and intent of Sheffield's actions.