Lina Khan Slams Trump FTC for Giving Oil Executives a Free Pass After Price-Fixing Scandal

A ban imposed last year by top antitrust enforcer Lina Khan under the Biden administration had stopped two fossil fuel CEOs accused of colluding on oil prices from serving on powerful corporate boards, with the Federal Trade Commission saying at the time that the order would "help ensure American consumers benefit from lower prices at the pump."

But the Trump administration on Thursday signaled no interest in ensuring oil companies won't engage in price-fixing and collusion to boost profits at the expense of working families as the FTC overturned the order that prevented former Pioneer Natural Resources CEO Scott Sheffield and Hess CEO John Hess from serving on the boards of ExxonMobil and Chevron, respectively.

Exxon bought Pioneer for $59.5 billion last year, while Chevron's purchase of Hess was announced Friday after months of arbitration proceedings.

The FTC, now led by pro-corporate Republican Andrew Ferguson, said the commission's complaints about Sheffield's and Hess's communications with the Organization of the Petroleum Exporting Countries (OPEC) did not "plead any antitrust law violation" or show that the acquisitions of the smaller companies and the CEO's positions on the boards "would be anticompetitive."

The decision, said Elyse Schupak, a policy advocate with Public Citizen's Climate Program, "undermines accountability for the CEOs accused of illegally colluding with OPEC to increase profits by driving up energy prices for American families and businesses."

Khan's investigation last year found the Sheffield had communicated with OPEC about slashing oil production and driving up consumer prices while claiming Biden administration policies were to blame, prompting U.S. Rep. Mark Pocan (D-Wis.) to say "jail time should seriously be considered" for the CEO.

"The FTC needs to be doing more to fully rout out Big Oil's anticompetitive behavior. But Ferguson has moved the FTC in the complete opposite direction."

The FTC also found that Hess "stressed the importance of oil market stability and inventory management and encouraged [OPEC] officials to take actions on these issues and speak about them at different events."

One analysis by Matt Stoller of the American Economic Liberties Project found that price-fixing schemes by corporations—not inflation—were to blame for 27% of the higher prices American families faced in 2021.

Khan on Thursday accused President Donald Trump's FTC of "letting off the hook oil executives caught trying to collude with foreign countries to inflate how much people pay at the pump."

The commission's three Republican members voted to allow Sheffield and Hess to serve on the boards—even as one of them, Commissioner Mark Meador, said that OPEC operates "as a de facto cartel" and warned the FTC "should not hesitate to bring enforcement actions against actual collusion."

Ferguson, meanwhile, claimed that banning Sheffield and Hess from the company boards "would damage the FTC's credibility and undermine its mission"—a statement that was denounced by the government watchdog Revolving Door Project.

"Banning a C-suite executive who tried to inflate oil prices isn't the move that 'damages' the FTC's credibility. It's Andrew Ferguson's willingness to absolve such actions that undermines the agency's mission to promote competition," said the group.

"The FTC needs to be doing more to fully rout out Big Oil's anticompetitive behavior," added Revolving Door Project. "But Ferguson has moved the FTC in the complete opposite direction—signaling to corporate America that they won't be held accountable for fleecing the public."

Schupak said that "while the Trump administration feigns interest in bringing energy prices down, its policies—fast-tracking export projects, rolling back regulatory safeguards, and halting enforcement actions for corporate wrongdoing—reveal the administration is far more interested in boosting the profitability of the oil and gas industry than providing Americans any relief or safeguarding them against corruption."