U.S. Sens. Shelley Moore Capito (R-WV) and Todd Young (R-IN) joined 36 of their Senate Republican colleagues in calling on the Federal Trade Commission (FTC) to conduct a fair and unbiased review of oil and gas mergers.
In a March 27 letter to FTC Chairwoman Lina Kahn that was led by U.S. Sen. Ted Cruz (R-TX) and Senate Republican Leader Mitch McConnell (R-KY), the senators urged the FTC to follow the law in its review of recently announced oil and gas industry mergers.
“As is the case with any merger review, including those in the industrial sector, mergers must be assessed under a fair and unbiased standard grounded in sound economics and law that protects American consumers and does not impose policy preferences to further political ends,” the senators wrote.
The Republican senators’ letter follows a letter sent on Nov. 1, 2023, by 23 Senate Democrats urging the FTC to investigate recently announced major energy acquisitions.
“Unfortunately, some of our Democratic colleagues do not want you to apply relevant facts or antitrust precedent fairly to these mergers, as demonstrated through their letter,” the Senate Republicans wrote. “Their letter makes specious and speculative claims about what these mergers would allegedly portend for ‘climate science’ and ‘climate legislation,’ among other things. But as you have stated, the drafters’ climate arguments have no role in the antitrust analysis of a merger […]”
The senators noted in their letter that a post-merger ExxonMobil would account for less than 3 percent of global production in a market dominated by foreign entities and less than 6 percent of U.S. domestic oil and gas production. Similarly, a post-merger Chevron would account for just 2 percent of global production and 4 percent of U.S. production.
The Republicans wrote in the letter that the two proposed transactions would greatly expand oil and gas production, likely leading to lower energy costs for consumers.
The lawmakers also made the point that denying the mergers and the related increase in production could lead to greater global greenhouse gas emissions, given that as domestic energy production drops, it would need to be replaced by foreign substitutes from countries with much higher emissions than the United States.
“We expect the Commission to exercise its authorities with adherence to the rule of law and respect for due process, not partisan pressures and policy preferences,” the senators concluded.
Among the other signers of the letter were U.S. Sens. Roger Wicker (R-MS), Jerry Moran (R-KS), John Hoeven (R-ND), Deb Fischer (R-NE), Bill Cassidy (R-LA), Steve Daines (R-MT), Thom Tillis (R-NC), and Marsha Blackburn (R-TN).