Senate Majority Leader Calls on FTC to Stop Chevron-Hess Merger

Senate Majority Leader Chuck Schumer called on the Federal Trade Commission to halt the merger between Chevron and Hess Corp., saying it would be harmful to consumers.

“I’m sounding the alarm against another proposed Big Oil merger: a $53 billion deal between Chevron and Hess,” Schumer said. written the on Sunday. “This would give big oil companies more fuel to raise gas prices. Trump could host dinners for big oil executives, but the FTC should side with consumers and push this deal,” the Senate Majority Leader wrote.

Democratic lawmakers have long argued that consolidation in the energy sector would lead to higher retail fuel prices. That’s why congressional Democrats have attacked every major deal over the past two years as consolidation gained momentum.

Earlier this year, Schumer led a group of 22 senators to ask the Federal Trade Commission to review the combination between Exxon and Pioneer Natural Resources, as well as the Chevron-Hess deal.

“Exxon and Chevron’s downstream operations would allow them to redirect crude supplies from Pioneer and Hess toward themselves, away from (and possibly to the detriment of) their midstream competitors,” the group wrote in a statement. letter to the FTC.

“These new market dynamics could result in price increases for midstream customers, and these additional costs are often passed down to retail customers, including gas station drivers. »

Despite pressure from lawmakers, the FTC green-lighted the Exxon-Pioneer merger on the condition that Pioneer’s former CEO, Scott Sheffield, would not join the board of the combined company. following allegations of collusion with OPEC to control oil production to keep prices higher.

Chevron’s tie-up with Hess already faces a challenge from Hess’ partner in Guyana, Exxon, which claims to have a right of first refusal on Hess’s participation in their joint project there.

By Irina Slav for Oilprice.com

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