Khan Accuses Trump FTC of Covering for Oil Exec in Price Gouging Probe

The Federal Trade Commission is reviewing a petition that could overturn a ban preventing two oil executives from serving on the boards of ExxonMobil and Chevron—a move that has drawn opposition from lawmakers and watchdog groups citing concerns over potential price fixing and market manipulation.

According to a statement from the FTC, the agency is accepting public comments through May 12 on a request filed by former Pioneer Natural Resources CEO Scott Sheffield. The petition seeks to reverse a consent order finalized under the Biden administration that barred Sheffield from joining ExxonMobil’s board following its $59.5 billion acquisition of Pioneer. A similar order applied to John Hess, CEO of Hess Corp., which is being acquired by Chevron for $53 billion.

The original ban was issued in 2024 under then-FTC Chair Lina Khan. Per a statement from the agency at the time, the FTC concluded that both executives had engaged in communications with officials from the Organization of Petroleum Exporting Countries (OPEC), including past and current secretaries general and an official from Saudi Arabia. The agency cited concerns that such contact could lead to coordinated efforts to reduce oil production and raise prices in the U.S. market.

Related: FTC Reconsiders Boardroom Bans Tied to Exxon, Chevron Oil Mergers

Both executives and their companies denied the allegations. Republican FTC commissioners opposed the original orders, arguing they exceeded the commission’s authority.

In a public statement on Monday, Khan encouraged individuals concerned about oil market collusion to submit comments opposing the petition. “The FTC is now trying to let this oil executive off the hook,” Khan said, referencing the effort to void the restriction on Sheffield.

The FTC investigation found that Sheffield had communicated with OPEC officials about limiting output while publicly attributing higher oil prices to domestic policy. According to the agency’s findings, this type of communication raised concerns about potential coordination that could harm consumers.

The public comment period remains open until May 12. A final decision by the FTC will follow after the comment period concludes.

Source: Common Dreams