The federal government announced Tuesday that three oil companies will pay record fines to resolve allegations of illegal coordination before the merger was completed.
The Federal Trade Commission (FTC) announced that three companies, XCL Resources Holdings, Verdun Oil Company II, and EP Energy LLC (EP), will pay a record $5.6 million in a civil lawsuit.
a legal complaint It was announced on Tuesday that EP was acquired by Verdun, which was jointly owned by XCL at the time. According to the law, under the Hart-Scott-Rodino Antitrust Act, the companies were required to observe a waiting period before transferring control from one business to another; “Business management'' has been transferred to XCL and Verdun. .
In particular, it accused XCL of halting EP's oil exploration activities “at a time when the United States was experiencing significant supply shortages and oil prices were soaring.”
The Hill has attempted to contact both companies for comment.
Democrats have frequently accused the energy industry of price gouging, as oil and gasoline prices soared in 2021 and 2022 due to coronavirus-related economic factors and Russia's invasion of Ukraine. The industry denies such claims, and analysts attribute the price hike primarily to economic factors.
Meanwhile, the FTC has brought increased scrutiny to the oil and gas industry in recent years, accusing certain companies of colluding with foreign producers and investigating proposed mergers.
Meanwhile, President-elect Trump has said he will ease FTC oversight of the oil industry. The Washington Post reported At the beginning of this year.
