FTC Heeds Blumenthal's Call to Launch Comprehensive Investigation into Oil Speculation, Potential Criminal Activity in Energy Market

Statement

Senator Richard Blumenthal (D-CT) issued the following statement today after Federal Trade Commission (FTC) Chairman Jon Leibowitz informed him that he was launching an investigation -- including authorizing the use of compulsory process -- to determine whether various actors in energy markets have engaged in market manipulation or other activities that have lessened competition to increase oil and petroleum prices disproportionately, resulting in skyrocketing gas prices for families and businesses in Connecticut and across the country:

"Federal officials are finally recognizing that where there's smoke, there may be fire -- and now they'll investigate to find out. I am greatly encouraged that the FTC has heeded my call for a thorough investigation, including the use of compulsory process, to uncover and root out potential criminal activity of bad actors in our energy markets. Families and businesses in Connecticut and across the country have borne the brunt of skyrocketing gas prices, and the investigation must be aggressive and hard-hitting, a crucial first step in leveling the playing field, ensuring fairness in the marketplace, and helping those struggling to make ends meet as our economy continues to recover."

Blumenthal has repeatedly called for a comprehensive federal investigation into potential illegal criminal activity in the energy markets, citing the necessity of the use of compulsory process, including subpoenas, to aid in fact-finding.

Specifically, the FTC announced that it is launching an investigation "to determine whether certain oil producers, refiners, transporters, marketers, physical or financial traders, or others have engaged or are engaging in practices that have lessened or may lessen competition -- or have engaged or are engaging in manipulation -- in the production, refining, transportation, distribution, or wholesale supply of crude oil or petroleum products; or have provided false or misleading information related to the wholesale price of crude oil or petroleum products to a federal department or agency."

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