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FTC Risks US Energy Stability to Placate Environmentalist Agenda

FTC Risks US Energy Stability to Placate Environmentalist Agenda

Apr 23, 2024

FTC Risks US Energy Stability to Placate Environmentalist Agenda

The Federal Trade Commission (FTC) has placed itself at the center of a controversy by intervening in a series of mergers and acquisitions within the U.S. oil and gas industry. These actions have raised concerns about potential overreach and the future of the sector which plays a vital role in the American economy.

The FTC is currently scrutinizing at least four significant deals in the industry, involving major players such as Chesapeake Energy and Southwest Energy, Chevron and Hess, Exxon and Pioneer Natural Resources, and Occidental and Crown Rock. The FTC's stance is that these mergers could limit competition and negatively impact consumers. However, industry representatives and some analysts argue that the scrutiny and delays are unwarranted and could hinder the industry's growth and the broader economy.

A notable case in point is the delayed acquisition between Occidental and Crown Rock. Occidental's previous acquisition of $57 billion was approved by the FTC in roughly a month, while the current deal, which is less than a quarter of the size, has been under the FTC's consideration for more than six months with no clear resolution in sight.

Critics of the FTC's actions, including the Financial Fairness Alliance, suggest that these interventions may be motivated by the Biden administration's agenda to transition away from oil and gas, despite potential consumer resistance. The FTC's approach appears to be testing the limits of existing legislation, with some FTC staff allegedly expressing that failing in court might be part of the strategy to push for legislative changes.

The potential implications of the FTC's interference are significant. The oil and gas industry is not only crucial for fueling cars and heating homes but also supports more than 10 million jobs in the United States. It provides the raw materials for numerous products and contributes to the nation's energy independence. The export of liquified natural gas from the U.S. has also been instrumental in reducing European and Asian dependence on authoritarian regimes like Russia and China.

As the situation unfolds, the Financial Fairness Alliance, among others, is calling for greater public awareness and scrutiny of the FTC's actions. They advocate for policies that encourage innovation and investment in the oil and gas sector, rather than interventions that may stifle competition and innovation.

RealClear Wire Article


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