E&C Democrats Demand Hearing on Allegations of Big Oil Colluding to Drive Up Gas Prices

Energy and Commerce Committee Ranking Member Frank Pallone, Jr. wrote to Chair Cathy McMorris Rodgers today demanding that the Committee hold a hearing on recent allegations that Big Oil is colluding to keep gas prices artificially high in order to bolster their own profits.  Pallone pointed toward recent revelations from a Federal Trade Commission (FTC) investigation into Scott Sheffield, the former CEO of Pioneer Natural Resources Company, who allegedly attempted to illegally coordinate crude oil production levels with OPEC and his competitors in order to drive up prices at the pump.

“These are shocking allegations that, if true, have had serious consequences for Americans and the prices they have paid at the pump,” Pallone wrote in his letter to Rodgers.  “As the Committee with jurisdiction over exploration, production, storage, supply, marketing, pricing, and regulation of energy resources, the Committee must hold a hearing on these allegations and the effects that collusion between American oil companies and OPEC may have had on Americans.”

Pallone pointed out that these allegations directly contradict Mr. Sheffield’s testimony at a Committee hearing in April 2022, where he insisted that “we do not set the sales price of our products.  Prices are determined by international markets based on global supply or demand fundamentals.”

Pallone’s request for a hearing comes on the heels of Committee Democrats launching their own investigation into Big Oil and whether companies are illegally colluding to artificially inflate gas prices.

“As detailed in my letter last week to seven different CEOs of American oil companies, collusion between oil companies to maintain high prices and gouge Americans at the pump is harmful and illegal.  The Energy and Commerce Committee has an obligation to the American people to ensure that oil companies are obeying the law,” Pallone concluded as he called for an immediate hearing. “This Committee must put its resources and weight behind a search for answers immediately.  A hearing with Mr. Sheffield, the former CEO of Pioneer, would be a crucial first step, and Committee Democrats urge you to schedule that hearing promptly.”

The full letter is available HERE.

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