Bowling Green Today

On March 28, 2024, U.S. Senator Rand Paul (R-KY), U.S. Senate Commerce Committee Ranking Member Ted Cruz (R-TX), Senate Republican Leader Mitch McConnell (R-KY), Senate Judiciary Committee Ranking Member Lindsey Graham (R-SC), and 34 other Senate Republicans expressed their concerns about the political interference by Senate Democrats in the review of recent oil and gas mergers. They have called on the Federal Trade Commission (FTC) to conduct a fair and unbiased review of these mergers, following requests from Senate Democrats for the FTC to investigate these major energy acquisitions based on what they describe as misleading and false allegations.

The Republicans' call comes in response to previous appeals by Senate Democrats for the FTC to use its authority to halt investigations into companies that allegedly discredit "climate science," "subvert our democratic processes," and "frustrate self-governing" through increased oil and gas production.

In a letter addressed to FTC Chairwoman Lina Khan, the GOP senators urged the FTC to adhere strictly to legal procedures and factual evidence when reviewing recently announced oil and gas industry mergers. They emphasized that any merger review should be conducted under a fair and unbiased standard grounded in sound economics and law that protects American consumers without imposing policy preferences for political ends.

The senators also pointed out that historically, the FTC has viewed oil and gas production within a global market context. In this context, post-merger ExxonMobil would account for less than three percent of global production dominated by foreign state-owned entities, while post-merger Chevron would account for just two percent of global production.

They further argued that denying these mergers could lead to greater global emissions of greenhouse gases as domestic energy production decreases, necessitating replacement by foreign substitutes. They highlighted that natural gas produced by competitors like Russia is considered "the dirtiest on earth" according to Energy Secretary Jennifer Granholm, whereas the U.S. produces some of the lowest methane intensive oil and gas in the world.

The senators concluded their letter by requesting that the FTC conduct a fair and unbiased review of these mergers based on facts, economic realities, and precedent. They stressed that the oil and gas industry should not be subject to unfair investigations or heightened antitrust scrutiny to further a political agenda that seeks to end fossil fuel production.

The letter was signed by several other senators including Sens. Mike Crapo (R-ID), Lisa Murkowski (R-AK), John Cornyn (R-TX), John Thune (R-SD), John Barrasso (R-WY), Roger Wicker (R-MS), Jim Risch (R-ID), Jerry Moran (R-KS), John Boozman (R-AR), John Hoeven (R-ND), Mike Lee (R-UT), Tim Scott (R-SC), Deb Fischer (R-NE), Shelley Moore Capito (R-WV), Bill Cassidy (R-LA), James Lankford (R-OK), Steve Daines (R-MT), Thom Tillis (R-NC), Dan Sullivan (R-AK), Todd Young (R-IN) among others.