Senate Majority Leader Chuck Schumer has escalated his stance against Chevron Corp.'s proposed acquisition of Hess Corp., calling on the Federal Trade Commission (FTC) to halt the proposed $53 billion deal.
Schumer's statement Monday on social media platform X, formerly known as Twitter, marks his strongest language yet against the merger since urging the FTC to investigate it last year.
I’m sounding the alarm against yet another proposed Big Oil merger—a $53B deal between Chevron and Hess
— Chuck Schumer (@SenSchumer) May 12, 2024
It would give Big Oil more fuel to raise gas prices
Trump might be hosting dinners for Big Oil execs, but the FTC should side with consumers and pump the breaks on this deal
Concerns Over Market Consolidation
Schumer emphasized concerns about the potential impact on gas prices if the merger proceeds amidst a broader context of consolidation within the US oil industry.
This comes after major acquisitions such as Exxon Mobil Corp.'s $60 billion purchase of Pioneer Natural Resources Co, as reported by Bloomberg.
Schumer's call to action is rooted in his belief that such mergers could give oil giants undue influence over gas prices, raising gas prices and ultimately affecting consumers.
His message resonates with previous letters sent by him and 22 other Democratic senators to the FTC, expressing apprehension about multi-billion dollar acquisitions by oil and gas companies, Reuters reported.
Implications of Chevron-Hess Deal in Guyana Oil Market
The proposed deal between Chevron and Hess is particularly significant, granting Chevron a substantial presence in Guyana, a burgeoning oil market.
This strategic move aligns with Chevron's aim to expand its US oil footprint and tap into Exxon Mobil's substantial oil discoveries in Guyana.
The FTC's role in this matter is crucial as it continues to review the merger. The outcome of this regulatory scrutiny will have far-reaching implications not only for the involved companies but also for the broader oil and gas market dynamics.
Join the Conversation