In yet another government overreach, the Federal Trade Commission (FTC) wants YOU to do their job for them in reviewing energy companies’ acquisitions – a clear case of bureaucratic laziness and regulatory burden-shifting that hampers American energy independence.
At a Glance
- The FTC is seeking public comment on a petition to modify a 2022 consent order involving Verdun Oil’s acquisition of EP Energy
- EnCap and other petitioners want to remove prior approval requirements that are strangling investment in domestic energy production
- The companies have already exited the Uinta Basin, selling assets to other energy producers
- The Biden administration reinstated burdensome prior approval provisions in 2021 that had been rejected back in 1995
- Public comments are open until May 2, 2025, giving citizens a rare chance to push back against regulatory overreach
Big Government Keeps Its Boot on Energy’s Neck
Here we go again, folks. While you’re struggling to afford gas for your car and heat for your home, the bureaucrats at the Federal Trade Commission are busy micromanaging energy company mergers with red tape that would make even the most dedicated paper-pusher blush.
The FTC is now asking for your thoughts on whether to ease up on some particularly suffocating regulatory requirements imposed on Verdun Oil Company and its associates after a 2022 acquisition – requirements that the companies argue are actively harming competition rather than protecting it.
The petition to modify the order comes from EnCap Investments L.P., EnCap Energy Capital Fund XI, Verdun Oil Company II, and XCL Resources Holdings – companies that have been forced to operate with one hand tied behind their backs since the 2022 consent order.
These American energy producers are essentially begging the government to let them function in a free market. Remember when America used to be about free enterprise? Those were the days, weren’t they? Now companies need permission slips from Washington bureaucrats to conduct business.
Prior Approval: The Regulatory Ball and Chain
At the heart of this regulatory nightmare is something called a “prior approval requirement” – a provision that forces these companies to get the FTC’s blessing before making certain acquisitions. It’s the economic equivalent of having to ask your mother-in-law for permission to buy a new car. The companies argue, quite reasonably, that this requirement is outdated, unnecessary, and actively harming competition in the Uinta Basin, an important area for domestic energy production in Utah.
“The Order’s purpose was to prevent the potential elimination of ‘substantial head-to-head competition between EnCap and [EP Energy]’ due to Verdun’s proposed acquisition of EP Energy (the ‘Acquisition’).”, states the Federal Trade Commission.
The real kicker? EnCap and XCL have already exited the Uinta Basin entirely, selling their assets to other energy companies like SM Energy and Northern Oil and Gas. Yet they’re still shackled by these regulatory constraints.
It’s like continuing to enforce a restraining order against someone who moved to another continent. But logic has never been the strong suit of federal regulators, especially when there’s an opportunity to flex their bureaucratic muscles.
From Common Sense to Bureaucratic Nonsense
This regulatory nightmare isn’t happening by accident. Back in 1995, the FTC actually rejected routine prior approval provisions, recognizing their burdensome nature. That makes sense – it was during a time when government occasionally remembered its proper role. But in 2021, under the Biden administration, the FTC reversed course and reinstated these economy-killing provisions. Is anyone surprised? This administration has waged a relentless war on American energy production since day one, and this is just another weapon in their arsenal.
“For example, Big West Oil, a Salt Lake City refiner, commented that the prior approval restriction ‘seems to put XCL in an unfair competitive position with other producers’ and ‘could have a negative impact to healthy, competitive growth and development of Uinta Basin resources which could harm the potential crude supply to Salt Lake Refiners and development opportunities for small producers and non-operating working interest owners in the Uinta Basin.'”
Even industry stakeholders like Big West Oil, a Salt Lake City refiner, recognize the madness. They’ve pointed out that these restrictions unfairly handicap certain producers and harm the development of domestic energy resources. But when has this administration ever listened to the actual experts in an industry? They’re too busy implementing their green agenda, consequences to American energy independence be damned.
Your Chance to Fight Back
The FTC is accepting public comments on this petition until May 2, 2025. I know, I know – they’re probably just going through the motions of “public input” while planning to ignore everything that doesn’t fit their predetermined agenda. But on the off chance that enough Americans speak up, there’s a possibility we could see some common sense return to this process. If you care about American energy independence, domestic jobs, and rolling back regulatory overreach, this is your chance to be heard.
After all, we’re only talking about the future of American energy production, the jobs of thousands of workers, and our ability to reduce dependence on foreign energy sources. But sure, let’s let unelected bureaucrats with no skin in the game make all the decisions. That’s been working out great so far, hasn’t it?