Members of Congress, alongside consumer advocacy organizations and climate groups, praised the Federal Trade Commission today for launching an investigation into ExxonMobil's proposed $60 billion acquisition of Pioneer Natural Resources. The groups also called on the FTC to open similar probes into Chevron's bid for Hess Corp. and Occidental's takeover of CrownRock over political, antitrust and climate concerns.

“The only competition that Big Oil is interested in is who can profit the most from their climate pollution. Big Oil is big enough: it has a colossal climate footprint, a huge hold over Americans’ budgets, and is an enormous leading cause of environmental injustice. It doesn’t need to get even bigger at the literal expense of our health, wealth, and future,” said Senator Ed Markey.

The Exxon-Pioneer deal would combine two of the largest oil and gas drillers in the world. Critics warn it could lead to further consolidation and reduced competition across the industry, as well as create an outsized impact on the fossil fuel industry’s political impact. The Chevron and Occidentaldeals have faced similar scrutiny over their potential impacts.

“There is a concerning wave of oil-and-gas industry consolidation happening right now, building on top of a longstanding consolidation trend. The proposed purchases from Exxon, Chevron and Occidental will harm competition, suppress worker wages and lead to higher prices at the pump for Americans,” said Representative Ro Khanna. “Additionally, they are neglecting to take the most basic steps to reduce emissions and stop their harm on future generations. I'm glad the Federal Trade Commission is investigating the Exxon and Chevron purchases and taking this seriously.”

Groups like Public Citizen, Friends of the Earth and Fossil Free Media Greenpeace, warn the mergers help oil companies resist the global energy transition. “The more Big Oil megamergers there are, the more failures like COP28 there will be. The consolidation of market power leads to the consolidation of political power. If Big Oil is allowed to become Bigger Oil, it will have ever more power to sabotage and delay the energy transition,” said Lukas Ross, Senior Program Manager at Friends of the Earth.

The Exxon-Pioneer merger would create the largest producer in the Permian Basin, which produces almost half of America’s oil. The calls come amid public pressure on political leaders to address climate change and rising gas prices.

“We need to break the grip of Big Oil – not encourage further consolidation that will squeeze Rhode Islanders at the gas pump,” said Senator Sheldon Whitehouse (D-RI). “I have urged the FTC to closely investigate the potential anticompetitive outcomes of this proposed merger and consider whether it would increase gas prices for hardworking families.”

With these deals, fossil fuel companies are betting billions on the belief that they can continue drilling and burning fuels unchecked, even as the climate crisis worsens. These deals are a clear indication that the industry expects it still has the political power to keep the world hooked, pumping oil and gas with abandon while the planet burns.

"We commend FTC Chair Lina Khan and the Commission for scrutinizing Exxon's mega-merger with Pioneer," said Cassidy DiPaola, Communications Director for Fossil Free Media. "These deals raise serious questions around market consolidation, consumer prices, political influence and environmental impacts. Oil giants should not be allowed to consolidate power amid public calls for climate action and energy transition."

The groups say the FTC, SEC and Congress must all strongly oversee oil and gas mergers moving forward.

“For now, the world needs oil. We do not need to get it from a consolidated oil industry dominated by multi-billion corporations with bad track records on climate change — that’s a choice. As a society, we can choose a better, cleaner, safer, and more reliable energy industry,” said Jeff Colgan, Professor of International Relations and Director of the Climate Solutions Lab at Brown University. “The FTC is right to be investigating the recent proposed mergers, but it should not be alone: the U.S. Congress, the SEC, and other parts of the government should look out for the interests of everyday Americans."