[Congressional Record Volume 170, Number 94 (Monday, June 3, 2024)]
[Senate]
[Page S3916]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
BIG OIL
Mr. SCHUMER. Madam President, on Big Oil, well, we just finished
celebrating the Memorial Day holiday. On one hand, it is a solemn
holiday, a remembrance of all who died to protect our country. On the
other hand, of course, Memorial Day weekend is an unofficial start to
summer. Schools go out on break, families and friends get together, and
millions of Americans go on road trips. So it is not hard to feel the
frustration, the sheer exasperation felt by millions when America's
biggest oil companies rake in record profits but still raise prices at
the pump. It is deeply, deeply unfair. And now we have reason to
believe that in some cases it may be unlawful.
Last week, I joined with my Democratic colleagues calling on the
Department of Justice to investigate the oil industry after the Federal
Trade Commission uncovered evidence of price fixing and of collusion.
According to the FTC, Pioneer Natural Resources--one of the most
important producers in the country--may have colluded unlawfully with
the foreign nations of OPEC to limit production and artificially boost
prices during the early days of the pandemic.
Much of the evidence in the FTC's complaint is redacted, but even
what is public is very, very troubling. According to the FTC, Pioneer's
former CEO worked extensively with OPEC as early as 2020 to limit
production, assuring them that American companies who normally competed
against each other were ``working to keep output artificially low.''
Artificially low output means higher prices for Americans.
Pioneer's former CEO reportedly told his competitors that they need
to ``stay in line'' and that ``if anybody goes back to growth,
[shareholders] will punish those companies.'' A month ago, he went as
far as saying, ``Even if oil gets to $200 a barrel, the independent
producers are going to be disciplined.''
This strong-arming seems to have worked, unfortunately. Today, growth
in U.S. oil output is down 50 percent since the pandemic, but the
average household is paying $500 more a year per car because of
possible collusion--$500 more a year per car for gasoline because of
possible collusion.
That is what frustrates Americans so much about Big Oil: Even when
they are making money hand over fist, they will keep raising prices on
us; they will keep squeezing us for everything we have got. And now,
they may--may--have crossed the line into unlawful behavior.
So the DOJ needs to step in and determine if any laws against
collusion or price fixing have been broken. At minimum, the American
people deserve to know if Big Oil executives are conspiring with each
other or with OPEC behind our back to illegally raise prices at the
pump.
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