Washington, D.C – Occidental Petroleum announced today that it has entered into an agreement to acquire privately-held CrownRock Energy, one of the largest producers in the Permian Basin, for $12 billion, according to a press statement from Fossil Free Media.
“This marks the third multi-billion dollar merger in the oil and gas industry over the past two months, following ExxonMobil's $64.5 billion deal to buy Pioneer Natural Resources and Chevron's $53 billion takeover bid for Hess Corporation,” the group stated.
“The rapid consolidation has raised serious concerns among consumer advocates and climate policy experts who argue the mega-mergers will reduce competition, lead to higher energy prices, and slow the transition to cleaner energy. Just last week, the Federal Trade Commission launched an in-depth investigation into Exxon's acquisition of Pioneer, following calls from Senate Majority Leader Chuck Schumer and other members,” the group said.
"These mergers are creating gigantic polluting empires with dangerous levels of political influence," said Cassidy DiPaola, Communications Director at Fossil Free Media. "As oil companies consolidate power, it will become even harder to advance climate policies and hold the industry accountable for its role in the climate emergency."
Environmental groups including Fossil Fuel Media are calling on Members of Congress, the Department of Justice and state attorneys general to carefully scrutinize the economic and environmental impacts of the deals. Other advocates are pressuring leaders in Congress to pass legislation strengthening antitrust enforcement.
With the CrownRock purchase, Occidental seeks to cement its position as one of the largest producers in the prolific Permian Basin, the epicenter of the shale boom that has transformed the U.S. into the world's largest oil producer over the past decade, according to the group.
The U.S. is not only the world’s largest oil producer, but is the world’s largest oil consumer and is by far responsible for more oil spills than any other nation.
“However, analysts say the merging of more major shale players reduces competition, a trend that could lead to higher costs for consumers reeling from high gasoline prices and rising inflation,” the group concluded.