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Schumer Urges FTC Caution on Chevron’s $53B Hess Deal Over Gas Price Fears

 |  May 14, 2024

U.S. Senate Majority Leader Chuck Schumer has called upon the Federal Trade Commission (FTC) to exercise caution regarding Chevron Corp’s proposed acquisition of Hess Corporation. Schumer’s plea comes amid growing concerns over the implications of Chevron’s $53 billion bid to acquire Hess, as reported by Reuters.

“The FTC should side with consumers and pump the breaks on this deal,” Schumer emphasized in a social media post, highlighting apprehensions that the acquisition could grant oil majors increased leverage to manipulate gas prices. The call for regulatory scrutiny underscores Schumer’s persistent advocacy for consumer protection in the face of corporate consolidation within the energy sector.

Last October, Chevron made headlines with its agreement to purchase Hess for $53 billion in stock, aiming to bolster its presence in the U.S. oil market while securing a strategic stake in Exxon Mobil’s significant oil discoveries in Guyana. However, Schumer and a cohort of 22 Democratic senators have voiced apprehensions over the potential consequences of such mega-mergers, urging the FTC to subject them to rigorous scrutiny.

Schumer’s latest appeal follows a pattern of proactive engagement with antitrust concerns surrounding the energy industry. In November of the preceding year, he joined forces with fellow Democratic senators to petition the FTC, warning against the adverse effects of multi-billion dollar acquisitions by oil and gas giants such as Exxon and Chevron. The collective letter echoed fears that consolidation within the sector could translate into escalated prices for consumers, exacerbating economic burdens already exacerbated by inflationary pressures.

As the debate surrounding Chevron’s acquisition of Hess continues to unfold, Schumer’s advocacy signals a broader effort to ensure that corporate maneuvers within the energy sector do not compromise the interests of ordinary consumers.

Source: Reuters