Bill Introduction to Hold Energy Companies Accountable

By Timothy Gardner

WASHINGTON (Reuters) – Democratic U.S. lawmakers on Wednesday introduced a bill aimed at holding energy companies accountable if they are found colluding with the Organization of the Petroleum Exporting Countries (OPEC) to raise oil prices.

The bill, introduced by Senator Edward Markey and Representative Nanette Barragan, stipulates that any energy company found by the Federal Trade Commission (FTC) to have colluded with OPEC would no longer be eligible for new oil and gas leases on federal lands and waters.

Background

In May, the FTC accused Pioneer Natural Resources (NYSE:PXD) CEO Scott Sheffield of exchanging numerous messages with OPEC officials to artificially inflate oil prices. Although the FTC approved Exxon Mobil (NYSE:XOM)’s $60 billion acquisition of Pioneer, they barred Sheffield from Exxon’s board.

Sheffield has denied these allegations. Exxon, which has acquired Pioneer, has not yet commented on the bill. However, they have stated that over 1.1 million documents and other information were submitted to the FTC, which has raised no concerns about their business practices.

Importance

This bill is unlikely to pass given that Republicans control the House of Representatives and Democrats hold a slim majority in the Senate. Nonetheless, it reflects a persistent effort by some lawmakers to pressure oil companies. Last month, the U.S. Senate budget committee began investigating domestic producers for any attempts to coordinate oil prices with OPEC, which the American Petroleum Institute labeled an “election year stunt.”

Markey’s bill is co-sponsored by approximately 11 other left-leaning Democrats in the House, including Alexandria Ocasio-Cortez and Raul Grijalva.

Key Quote

Markey stated, “This bill is a first step towards ensuring Big Oil faces Big Consequences when they profiteer off the backs of hard-working Americans.”