United States of America

Michigan Sues Oil Companies for Antitrust Violations

Is Big Oil's conspiracy inflating energy costs or is Nessel's lawsuit the real threat to energy affordability?

Published JAN 26

Michigan Sues Oil Companies for Antitrust Violations

Story

Above: The Marathon refinery in Detroit, Michigan, on Oct. 14, 2024. Image credit: Charly Triballeau/AFP/Getty Images

The Facts

Michigan Attorney General Dana Nessel filed a federal antitrust lawsuit on Friday against BP, Chevron, ExxonMobil, Shell and the American Petroleum Institute for alleged violations of the Sherman Antitrust Act, the Clayton Antitrust Act and the Michigan Antitrust Reform Act (MARA).
Michigan Department of Attorney General
Daily Wire
Common Dreams
The lawsuit accuses the defendants of acting as a cartel to "forestall meaningful competition from renewable energy" and "restrain the emergence of electric vehicles" (EVs), with the intent of preserving their dominant position in the energy market and their profits.
Michigan Department of Attorney General
Michigan Department of Attorney General
In enacting this "conspiracy," Nessel claims that the five ditched renewable energy projects, weaponized patent litigation, suppressed information, misdirected and infiltrated institutions, surveilled and intimidated watchdogs and public officials and coordinated market efforts to divert capital from renewables.
Michigan Department of Attorney General
As a consequence, the lawsuit argues that the defendants artificially reduced the electricity supply, which in turn "imposed staggering external costs" on Michigan, estimated by Nessel to be in the billions of dollars in overcharges and externalities, and delayed the transition to renewables and EVs.
Michigan Department of Attorney General
The filing, which demands a jury trial, seeks treble in compensatory damages for the overcharges and alleged harms suffered by Michigan under the Sherman Act and MARA. The lawsuit also requests the imposition of MARA's maximum civil penalties on the defendants, as well as permanent injunctive relief under the Clayton Act.
Michigan Department of Attorney General
The defendants denied Nessel's allegations, with Chevron Counsel Theodore J. Boutrous Jr. stating that the lawsuit ignores the state's dependence on oil and gas. American Petroleum Institute Senior Vice President and General Counsel Ryan Meyers, meanwhile, dismissed the legal action as "baseless."
The Detroit News
The Hill

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The Spin

Climate activist narrative

For decades, Big Oil companies conspired to suppress renewables and EVs through patent manipulation, deception and coordinated market control, forcing Michigan families to pay artificially inflated prices for outdated fossil fuels. For this, these companies must be held accountable for the energy affordability and climate crises they perpetrated to serve their own selfish interests.

Michigan Department of Attorney General

The Center for Climate Integrity

Climate-skeptic narrative

Instead of solving Michigan's energy crisis, Nessel's frivolous lawsuit will only exacerbate the situation, with her pointless green crusade almost certain to raise energy costs and threaten vital jobs, all while wasting taxpayers' money. Instead of punishing major oil and gas companies, Michigan should work with them to expand the state's energy production and reduce prices.

Kevin Kijewski on X