Obama eyes active role in U.S. oil markets

Democrat Barack Obama would take an active role in U.S. oil markets as president, tackling concerns about the dominance of large oil companies and eyeing the Strategic Petroleum Reserve as a potential weapon to combat high prices, his top energy adviser said.

Jason Grumet, the presidential hopeful’s key energy and environmental policy aide, told Reuters this week that an Obama administration would crack down on any competition lapses in the sector that have resulted from big corporate mergers.
Grumet, head of the Washington-based Bipartisan Policy Center in addition to advising the Obama campaign, said the oil industry had “concentrated incredible market power in a small number of companies” in a way that caused alarm.

“Senator Obama has a deep concern that the consolidation of the industry — these national mergers, you know, that were allowed under both Clinton and Bush administrations — are a cause for some concern,” he said.

He said an Obama administration would examine “whether these mergers and consolidations have decreased competition in a way, concentrated market power in a way, that is undermining to consumers.”

Reuters