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Senators Ted Cruz (R-Texas), Mitch McConnell (R-Ky.) and Lindsey Graham (R-S.C.) are leading a coalition of 38 Senate Republicans to condemn the anti-energy agenda of Senate Democrats.
In a letter to FTC Chair Lina Khan, released by the Senate Committee on Commerce, Science and Transportation, Republicans scolded Democrats for urging the FTC to prosecute seperate ExxonMobil and Chervon mergers on antitrust grounds. Rather than fostering an energy monopoly, these mergers will lower consumer costs and promote American energy independence.
Senate Republicans warned Chair Khan to refrain from using antitrust law to pursue policy preferences, insisting that energy companies deserve an impartial investigation, rather than a partisan witch-hunt. Americans for Tax Reform applauds Senate Republicans for challenging these anti-energy delusions, which have hijacked the Democrat Party and hurt the interests of American consumers.
Click here to read the full letter.
In November 2023, a coalition of 23 Senate Democrats lobbied the FTC to bring antitrust charges against ExxonMobil and Chevron for a collection of separate mergers. Although Senate Democrats cried wolf over potential market consolidation, post-merger estimates have guaranteed that the American energy market would remain competitive.
For instance, a post-merger ExxonMobil would control less than six percent of domestic oil and gas production, and less than three percent of global output. Similarly, a post-merger Chevron would only control four percent of the U.S. market, and two percent of global output. According to Senate Republicans, this lobbying effort demonstrated “a fundamental misunderstanding of how U.S. refineries operate at capacity, how global energy markets function, and how prices are determined.”
In their letter to Chair Khan, Senate Republicans argued that Democrats want to weaponize the FTC to achieve their anti-energy policy aims. Apparently, Senate Democrats “view antitrust enforcement as an opportunity to impose the same anti-fossil fuel policy preferences to the detriment of the American people.” However, Senate Republicans reminded Chair Khan that “the oil and gas industry (like any other industry) should not be subject to unfair investigations…in order to further a political agenda.”
Instead, Senate Republicans argued that these mergers should be celebrated for lowering consumer costs and promoting American energy independence. Rather than ceding global energy dominance to competitors such as Russia, these mergers would produce “an additional one billion barrels of oil over the life of the assets beyond what could be achieved if the parties acted separately.” Senate Republicans have predicted that this elevated production would be a “welcome development for American families who are paying substantially higher energy prices because of Biden administration policies.”
Although Senate Democrats would gladly use the FTC to execute their anti-energy policy aims, Senate Republicans can be trusted to challenge any biased harassment of American energy companies. Americans for Tax Reform applauds Senate Republicans for fighting to lower consumer prices and safeguard American energy independence.