Former President Donald Trump has indicated to oil company leaders that he will make things easier for them if he becomes president again.
What's happening?
According to The Washington Post, oil executives complained about how the government's Federal Trade Commission is making it difficult for them to merge and expand. Trump assured them that, under his leadership, the FTC wouldn't be as strict. This comes at a time when many big oil companies are trying to merge.
For example, Vicki Hollub, the CEO of Occidental Petroleum, said her company's $12 billion deal to buy another oil company, CrownRock, was delayed because the FTC wanted a lot of detailed information, including information from her phone, as the Post reported. In response, Trump suggested, per the reporting, that if he wins election, he will make sure the FTC moves quicker to approve these deals. Some politicians argue that we need more careful oversight to protect consumers and the environment.
Additionally, the promise underscores the influence of major donors on political agendas, raising concerns about the extent to which campaign contributions may shape policy decisions.
It is now an "open question to how far politicians can go making promises to donors and potential donors," campaign finance lawyer Brendan Fischer said, per the Post.
Why are oil mergers important?
This pledge from Trump is important because it could mean fewer rules for big oil companies, which might allow them to become even bigger without much oversight.
This lack of regulation could allow giants such as ExxonMobil to expand their operations without adequate checks and balances. For instance, ExxonMobil's recent $59.5 billion acquisition of Pioneer Natural Resources suggests that the company has no plans to transition away from its core business of producing dirty energy.
This consolidation of power among a few megacompanies could hinder efforts to secure energy access for people and meet climate targets, as David Tong from Oil Change International pointed out to the Guardian.
Additionally, these large oil companies often have a history of lobbying against policies that promote clean energy, making it harder for governments to implement necessary regulations. Without oversight, these mergers could enable the continued expansion of pollution-causing activities, making it more difficult to achieve a sustainable future.
What's being done about oil mergers?
In response to these big oil company mergers, some politicians are asking the government to look more closely at the deals to make sure they don't hurt consumers. For example, Senate Majority Leader Chuck Schumer and other Democratic senators have called for tougher investigations into these mergers.
The FTC has also been examining major deals, such as Occidental's purchase of CrownRock, to ensure they follow the rules. Environmental groups are advocating for stronger regulations to protect the planet and reduce our reliance on dirty energy. Individuals can help by supporting leaders and policies that prioritize the environment.
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