A coalition of climate and consumer advocacy groups today praised the Federal Trade Commission's decision to investigate ExxonMobil's proposed $60 billion acquisition of Pioneer Natural Resources. Exxon’s acquisition of Pioneer makes it the largest producer of oil and gas in the Permian Basin, which produces more than 40% of U.S oil.
"We commend the FTC for scrutinizing Exxon's massive takeover of Pioneer Natural Resources," said Cassidy DiPaola, Communications Director for Fossil Free Media. "Rapid consolidation of the oil and gas sector into ever-larger behemoths allows companies like Exxon to exert outsized control over energy policymaking and climate action. With climate disasters already costing the U.S. $165 billion every year, we cannot afford regulatory capture by fossil fuel conglomerates invested in business-as-usual emissions."
Chevron also announced a deal to buy Hess Corp. for $53 billion in October, a deal aimed at boosting production and greater returns to investors and signaling to the world that the U.S fossil fuel industry has no plans of slowing down, despite warning calls from climate experts.
“Big Oil getting bigger is an obvious threat to our climate, our democracy and our economy,” said Lukas Ross, Senior Program Manager at Friends of the Earth. “The FTC was right to open an investigation into Exxon. We hope that Chevron is next.”
The groups warned that the Exxon-Pioneer deal is part of a broader trend of consolidation within the fossil fuel industry, as major players acquire smaller companies to expand their drilling operations. They argue this consolidation threatens to undermine climate action by empowering oil giants to increase political influence and stifle competition.
“Exxon’s Pioneer acquisition threatens consumers, as it consolidates its control over vertically-integrated operations from the Permian to exports out of the Gulf, risking inflated prices at the pump for millions of working families,” said Tyson Slocum, energy program director for Public Citizen.
This announcement follows calls from Members of Congress, led by Majority Leader Chuck Schumer and 22 Senate Democrats to FTC Chair Lina Khan urging the FTC to “carefully consider all of the possible anticompetitive harms” posed by the two potential blockbuster oil-and-gas deals.
