Thu. Oct 10th, 2024

Second oil company CEO conspired with OPEC to keep prices high, FTC charges
https://www.msn.com/en-us/money/markets/second-oil-company-ceo-conspired-with-opec-to-keep-prices-high-ftc-charges/ar-AA1rtYRH?ocid= msedgdhp&pc=U531&cvid=5f86f77ede1640cea66d012940882ca6&ei=9

Federal regulators are alleging a major oil company CEO conspired with foreign governments to keep oil and gas prices high. On Monday, the Federal Trade Commission (FTC) filed a complaint against John B. Hess, CEO of Hess Corporation, accusing him of secretly communicating with the Organization of Petroleum Exporting Countries (OPEC). Hess’s company had sought a $53 billion merger with oil giant Chevron — a deal that the FTC ruled could go forward only if Hess himself was not involved with the subsequent company. “We are very pleased that our merger with Chevron has cleared this significant regulatory hurdle,” Hess said in a statement. “This transaction continues to be an outstanding deal for Hess and Chevron shareholders and will create a premier integrated energy company that is ideally positioned for the energy transition.” But while Hess will remain on as an advisor to Chevron concerning the new company’s business operations in Guyana, he will not get a seat on its board. The FTC asserted in its complaint that his direct involvement in the new conglomerate would “heighten the risk of harm” to market competition, and would “meaningfully increase” the risk of the kind of backdoor coordination between rivals that is barred by federal antitrust law.

Now I suspect the reasonable people here will applaud the FTC as collusion is just wrong. But we know fake oil consultant Steven Koptis thinks the actions of people like John Hess are just fine and the FTC should stop promoting market competition.

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