Hess Faces Class Action Alleging OPEC Collusion to Hike Gas Prices
A new lawsuit claims Hess and OPEC suppressed output to raise fuel costs for consumers.
Key points
- The lawsuit alleges Hess and OPEC suppressed U.S. oil production to raise fuel prices.
- Average gasoline prices increased from $2.67 to $3.61 per gallon during the alleged period.
- The FTC previously barred John Hess from Chevron's board over alleged coordination with OPEC.
A class action lawsuit filed in September 2026 alleges Hess Corp. colluded with OPEC. The complaint claims this partnership kept U.S. oil production artificially low.
Plaintiffs argue the scheme drove average gasoline prices from $2.67 to $3.61 per gallon. This price increase occurred between 2021 and 2022 despite high profit margins.
Alleged collusion occurred at industry dinners
The suit claims OPEC hosted private dinners for shale executives at CERAWeek. These meetings reportedly took place annually from 2017 through 2023 in Houston.
John Hess described one session as a good exchange of information. The complaint alleges executives traded confidential drilling plans and price targets there.
Production growth slowed despite high oil prices
Oil prices rose from nearly $70 to over $120 per barrel in 2022. The lawsuit states production costs were roughly $40 per barrel at the time.
Combined output growth fell from 63% to 14% after the alleged conspiracy began. Plaintiffs argue this flat production defied normal market incentives for drilling.
Regulators previously restricted Hess board appointments
The Federal Trade Commission examined the alleged collusion during merger reviews in 2024. It barred John Hess from Chevron's board in October of that year.
The FTC alleged he discussed global output with OPEC representatives. A similar case against other producers survived dismissal in New Mexico federal court.
