Judge Allows Shale Oil Antitrust Case Against Major Producers to Proceed
A federal judge in New Mexico has ruled that lawsuits against major US oil producers can proceed. The case alleges that Diamondback Energy, Occidental Petroleum, and others conspired to reduce shale oil production, leading to higher prices for crude oil and related products.
The plaintiffs claim that limiting shale production contributed to higher fuel prices. Shale oil is a key component of gasoline, diesel fuel, and home heating oil. The cases were brought by commercial and government consumer plaintiffs in 2024.
US District Judge Matthew Garcia rejected the producers' arguments that resolving the claims would require addressing political and foreign policy questions outside of court. He stated that the antitrust laws provide workable standards to resolve the question of whether domestic corporations conspired to coordinate production cuts.